Question: PROBLEMS (60 MARKS) (Show all the calculation steps) PROBLEM 1 BigBook.Com uses LIFO inventory accounting. Notes to BigBook.Com's Year 9 financial statements disclose the

PROBLEMS (60 MARKS) (Show all the calculation steps) PROBLEM 1 BigBook.Com uses

PROBLEMS (60 MARKS) (Show all the calculation steps) PROBLEM 1 BigBook.Com uses LIFO inventory accounting. Notes to BigBook.Com's Year 9 financial statements disclose the following (it has a marginal tax rate of 35%); Inventories Year 8 Year 9 Raw materials.. $392.675 $369,725 Finished products 401.342 377,104 794.017 746,829 Less LIFO reserve... (46,000) (50,000) $748.017 $696,829 a. Determine the amount by which Year 9 retained earnings of BigBook.Com changes if FIFO is used. (7 marks) b. Determine the amount by which Year 9 net income of BigBook.Com changes if FIFO is used for both Years 8 and 9. (7 marks) c. Discuss the usefulness of LIFO to FIFO restatements in an analysis of BigBook.Com. (6 marks)

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