Hall Inc. has beginning inventory of 100,000 units (cost of $15 per unit) accounted for using...

 

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Hall Inc. has beginning inventory of 100,000 units (cost of $15 per unit) accounted for using the LIFO inventory method. During the year, the company sold more items than purchased, causing the ending inventory balance to drop to 65,000 units. Assuming a tax rate of 25%, and a current replacement cost of inventory of $28 per unit, what is the LIFO liquidation effect on after-tax income? Select one: O a. $341,250 b. $455,000 c. $633,750 * d. $113,750 Hall Inc. has beginning inventory of 100,000 units (cost of $15 per unit) accounted for using the LIFO inventory method. During the year, the company sold more items than purchased, causing the ending inventory balance to drop to 65,000 units. Assuming a tax rate of 25%, and a current replacement cost of inventory of $28 per unit, what is the LIFO liquidation effect on after-tax income? Select one: O a. $341,250 b. $455,000 c. $633,750 * d. $113,750

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The detailed answer for the above question is provided below Answer C 633750 Calculation Be... View the full answer