Question: Chide's storage facility was shut down due to a strike in December 2020, resulting in a drastic reduction in inventory. The company had switched

Chide's storage facility was shut down due to a strike in December

Chide's storage facility was shut down due to a strike in December 2020, resulting in a drastic reduction in inventory. The company had switched to LIFO effective January 1, 2020. The following data are available. Chide is on a calendar-year reporting basis. Units Unit Cost Beginning inventory (Base layer of LIFO-January 1) 36,000 $1.00 Inventory purchases during 2020 810,000 $1.25 Total available for sale 846,000 Sales (valued on a LIFO basis) from: Purchases 810,000 $1.25 Base inventory layer 18,000 $1.00 Total 828,000 Ending inventory (December 31, 2020) 18,000 What is the LIFO liquidation after-tax profit or loss assuming a 25% tax rate? Note: Indicate a loss with a negative sign. $ 0 Chide's storage facility was shut down due to a strike in December 2020, resulting in a drastic reduction in inventory. The company had switched to LIFO effective January 1, 2020. The following data are available. Chide is on a calendar-year reporting basis. Units Unit Cost Beginning inventory (Base layer of LIFO-January 1) 36,000 $1.00 Inventory purchases during 2020 810,000 $1.25 Total available for sale 846,000 Sales (valued on a LIFO basis) from: Purchases 810,000 $1.25 Base inventory layer 18,000 $1.00 Total 828,000 Ending inventory (December 31, 2020) 18,000 What is the LIFO liquidation after-tax profit or loss assuming a 25% tax rate? Note: Indicate a loss with a negative sign. $ 0 Chide's storage facility was shut down due to a strike in December 2020, resulting in a drastic reduction in inventory. The company had switched to LIFO effective January 1, 2020. The following data are available. Chide is on a calendar-year reporting basis. Units Unit Cost Beginning inventory (Base layer of LIFO-January 1) 36,000 $1.00 Inventory purchases during 2020 810,000 $1.25 Total available for sale 846,000 Sales (valued on a LIFO basis) from: Purchases 810,000 $1.25 Base inventory layer 18,000 $1.00 Total 828,000 Ending inventory (December 31, 2020) 18,000 What is the LIFO liquidation after-tax profit or loss assuming a 25% tax rate? Note: Indicate a loss with a negative sign. $ 0

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