A trader has valued his opening and closing stocks using LIFO. He has now heard that LIFO
Question:
A trader has valued his opening and closing stocks using LIFO. He has now heard that LIFO is not acceptable under current accounting standards and has amended his accounts to value the stocks on FIFO. His stocks valued at FIFO and LIFO are as follows.
What effect will this amendment make to the trader's gross and net profits?
Transcribed Image Text:
Opening stock Closing stock FIFO $2000 $4000 LIFO $1500 $3200
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Switching from LIFO LastIn FirstOut to FIFO FirstIn FirstOut will have an impact on the valuation of ...View the full answer
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