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 following

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

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% ): a. Determine the amount by which Year 9 retained eamings 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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