Assume that, at the end of 1999 (1998), Pfizer reported that replacement cost (equivalent to FIFO) for its inventories that are valued using LIFO accounting were $15 ($8) million greater than the LIFO valuation. Ignoring the impacts of any acquisitions and divestitures, how much income “from continuing operations before provision for taxes on income and minority interests” would have been reported by Pfizer if it had used replacement cost accounting (FIFO) during 1999? Show work and discuss the advantages of FIFO over LIFO and vice versa.

Answer rating: 100% (QA)

Advantages of FIFO over LIFO FIFO is a natural system of inventory naturally we tend to dispose of o... View the full answer