The answer is C. Hoped this helped you
Answer:
C) Increases in equity from peripheral transactions of an entity
Explanation:
A) Is the description of Revenue
B) Social capital increase
Answer: D -LIFO results in a higher net income than FIFO when costs are falling.
Explanation:
The LIFO and FIFO are methods of accounting for inventory.
LIFO means last in, first out. It means the last inventory purchased is the first inventory sold.
FIFO means first in,first out. It means older inventories are sold off first.
During period of rising prices, LIFO results in lower net income because the Cost of Goods Sold is higher. Inventories cost more during periods of rising prices.
When prices are falling , the LIFO method results in a lower cost of goods sold and therefore a higher net income.
Using line depreciation method,
Depreciable cost = Cost - Salvage value = $40,900,000- $4,090,000 = $36,810,000
Depreciation per year = Depreciable cost/life = 36,810,000/15 = $2,454,000
After third year of use,
Depreciation expenses = $,2,454,000*3 = $7,362,000
Book value = cost - depreciation expenses = 40,900,000 - 7,363,000 = $33,538,000
