Cranchey Company reported a LIFO ending inventory of $670,000 on its balance sheet at December 31,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cranchey Company reported a LIFO ending inventory of $670,000 on its balance sheet at December 31, 2016. Cranchey's disclosure notes to the financial statements reported that the LIFO Reserve at December 31, 2015 was $32,000 and the LIFO Reserve at December 31, 2016 was $40,000. Which of the following statements is correct for Cranchey Company for the effect of the LIFO Reserve in 2016 in converting LIFO amounts to FIFO amounts? Pretax income would have been higher by $32,000 under FIFO. Cost of goods sold would have been higher by $8,000 under FIFO. Pretax income would have been higher by $8,000 under FIFO. Cost of goods sold would have been higher by $40,000 under FIFO. Cranchey Company reported a LIFO ending inventory of $670,000 on its balance sheet at December 31, 2016. Cranchey's disclosure notes to the financial statements reported that the LIFO Reserve at December 31, 2015 was $32,000 and the LIFO Reserve at December 31, 2016 was $40,000. Which of the following statements is correct for Cranchey Company for the effect of the LIFO Reserve in 2016 in converting LIFO amounts to FIFO amounts? Pretax income would have been higher by $32,000 under FIFO. Cost of goods sold would have been higher by $8,000 under FIFO. Pretax income would have been higher by $8,000 under FIFO. Cost of goods sold would have been higher by $40,000 under FIFO.
Expert Answer:
Answer rating: 100% (QA)
Pretax Income would have been higher by 8000 under FIFO When LIFO is use... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
Students also viewed these accounting questions
-
Jen and Berry's sells ice-creams from its factory-shop in Petone. There is a managing director (Maynard Dibble), a marketing manager (Mary Salman) and a production manager (Peter Pritchard). Maynard...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Question 1 This question has two parts, (A) and (B). Answer both parts. 100% Liverpool plc is a company that manufactures a number of different types of electrical goods and has a year end of 31...
-
In this photo, Ramu is eating raw meat. What do Ramus behaviors suggest about how we develop self-concepts? Would you define Ramu as a human or a wolf?
-
Write a report to the CEO of OfficeMax recommending specific benchmark measures. Include specific competitors against which to measure.
-
In Fig. 30-62, & = 100 V, R1 = 10.0 Ω ,R2 = 20.0 Ω,R3 = 30.0 Ω, and L = 2.00 H. Immediately after switch S is closed, what are (a) i1 and (b) i2? (Let currents in...
-
For the data in Exercise 7: a. Compute the expected frequencies for testing H0 : p1 = 0.4, p2 = 0.3, p3 = 0.1, p4 = 0.15, p5 = 0.05. b. Is it appropriate to perform a chi-square test for the...
-
Polly Company purchased three buildings. Polly has assembled the following market data, based on commercial real estate sales in the area in the past six months, which can be used to indirectly...
-
P Corporation is a manufacturing company engaged in the production of a single special product known as "ML". Production costs are accumulated with the use of a job-order-cost system. The following...
-
Given the following information, answer the following questions referencing the floor plan for a corporate training facility and the associated table and psychrometric chart. Building exhaust is 1100...
-
Angelina files as a head of household. In 2022, she reported a W-2 salary of $55,000 and $15,000 of qualified dividend income. Angelina has itemized deductions totaling $18,000. What is Angelina's...
-
A circuit consists of a parallel-plate capacitor, an inductor, and a switch, which is initially open. The capacitor plates have an area of \(1.00 \times 10^{-4} \mathrm{~m}^{2}\) and are held \(0.100...
-
Four charged particles are located at the vertices of a square of side length \(1 \mathrm{~m}\) in the \(x y\)-plane. Particles 1,2 , and 3 \((q 1=5.00 \mu \mathrm{C}, q 2=-4.00 \mu \mathrm{C}\), and...
-
In an \(L C\) circuit, there is always some energy dissipation as electrical energy is converted to thermal energy. (a) What property of the circuit is responsible for electrical energy being...
-
1. You are a new administrator at Jonestown Medical Center. You receive a telephone call from the nurse manager of the emergency room. Dr. Smith, an emergency room physician who is an employee of...
-
A feed stream containing a mixture of 40% n-butane, 30% n-pentane, and 30% n-hexane fl ows into a fl ash unit. The fl ash temperature is 290 K and the fl ash pressure is 0.6 bar. What is the ratio of...
-
How is warehousing related to supply chain management and logistics? Provide examples
-
Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2012 is: Joint cost of production in July 2012 was $50. A...
-
Vin Diesel owns the Fredonia Barber Shop. He employs four barbers and pays each a base rate of $1,250 per month. One of the barbers serves as the manager and receives an extra $500 per month. In...
-
At April 30, partners capital balances in PDL Company are: G. Donley $52,000, C. Lamar $48,000 and J. Pinkston $18,000. The income sharing ratios are 5:4:1, respectively. On May 1, the PDLT Company...
-
Break-even analysis is of limited use to management because a company cannot survive by just breaking even. Do you agree? Explain.
-
A spring controlled governor is found unstable. It can be made stable by (a) increasing the spring stiffness (b) decreasing the spring stiffness (c) increasing the ball weight (d) decreasing the ball...
-
Two co-axial rotors having moments of inertia \(I_{1}, I_{2}\) and angular speeds \(\omega_{1}\) and \(\omega_{2}\) respectively are engaged together. The loss of energy during engagment is equal to...
-
Consider the following statements regarding a high speed in-line engine with identical reciprocating parts with cranks spaced to give equal firing intervals: 1). All harmonic forces, except those...
Study smarter with the SolutionInn App