Holliday Company's inventory records show the following data:

A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for $12 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. Under the FIFO method, the December 31 inventory is valued at
a. $14,000.
b. $14,500.
c. $15,000.
d.$18,000.

Transcribed Image Text:

Units Inventory, January 1 Purchases: June 18 November 8 Unit 5,000 4,500 3,000 Cost S9.00 8.00 7.00