During 2020, Blue Company switched from FIFO to Weighted Average Inventory Prices. Pre-tax income in 2019 and
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During 2020, Blue Company switched from FIFO to Weighted Average Inventory Prices. Pre-tax income in 2019 and 2018 (Blue's first year of operations) under FIFO were $163,560 and $186,350, respectively. Pre-tax income using weighted average price in prior years would have been $152,200 in 2019 and $180,800 in 2018. In 2020, Blue reported pre-tax income (using weighted average price) of $214,600. Comparative income for Blue, beginning with "Income before income taxes" as reported on the 2020 income statement. (The tax rate in all years is 30%).
Calculate
2020 | 2019 | 2018 | ||||
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Profit before income tax | ||||||
Income tax | ||||||
Net Income |
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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