LIFO Layer Liquidations and Net Income. The following information is taken from the annual report of The Claremont Corporation: (in millions) Year 2 Year 1 Net income before tax $375 $29 The company uses the LIFO method to value its inventory. In addition, the footnotes to the company's annual report revealed that, during Year 2 and Year 1, inventory usage resulted in liquidations of LIFO inventory quantities, and the effect of these liquidations was to reduce the cost of goods sold by $28 million and $6 million in Year 2 and Year 1, respectively. Calculate the company's net income before tax assuming that the LIFO inventory liquidations had not occurred. Year 2 Year 1 Restated net income
LIFO Layer Liquidations and Net Income. The following information is taken from the annual report of The Claremont Corporation: (in millions) Year 2 Year 1 Net income before tax $375 $29 The company uses the LIFO method to value its inventory. In addition, the footnotes to the company's annual report revealed that, during Year 2 and Year 1, inventory usage resulted in liquidations of LIFO inventory quantities, and the effect of these liquidations was to reduce the cost of goods sold by $28 million and $6 million in Year 2 and Year 1, respectively. Calculate the company's net income before tax assuming that the LIFO inventory liquidations had not occurred. Year 2 Year 1 Restated net income
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 13RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...
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LIFO Layer Liquidations and Net Income.
The following information is taken from the annual report of The Claremont Corporation:
| (in millions) | Year 2 | Year 1 |
|---|---|---|
| Net income before tax | $375 | $29 |
The company uses the LIFO method to value its inventory. In addition, the footnotes to the company's annual report revealed that, during Year 2 and Year 1, inventory usage resulted in liquidations of LIFO inventory quantities, and the effect of these liquidations was to reduce the cost of goods sold by $28 million and $6 million in Year 2 and Year 1, respectively.
Calculate the company's net income before tax assuming that the LIFO inventory liquidations had not occurred.
| Year 2 | Year 1 | |
|---|---|---|
| Restated net income |
|
|
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