During 2017, Teal Mountain Inc. changed from LIFO to FIFO inventory pricing. Teal Mountain began operations in 2015 and its pretax income in 2016 and 2015 under LIFO was $470,000 and $562,000, respectively. Pretax income using FIFO pricing in the prior years would have been $504,000 in 2015 and $615,000 in 2016. In 2017, Teal Mountain reported pretax income using FIFO pricing of $577,000. Show comparative income statements for Teal Mountain beginning with “Income before income tax,” as presented in the 2017 income statement. The tax rate for all years is 30%. 2017 2016 2015 Income before income tax $enter a dollar amount $enter a dollar amount $enter a dollar amount Income tax enter a dollar amount enter a dollar amount enter a dollar amount Net Income $enter a total amount $enter a total amount $enter a total amount
During 2017, Teal Mountain Inc. changed from LIFO to FIFO inventory pricing. Teal Mountain began operations in 2015 and its pretax income in 2016 and 2015 under LIFO was $470,000 and $562,000, respectively. Pretax income using FIFO pricing in the prior years would have been $504,000 in 2015 and $615,000 in 2016. In 2017, Teal Mountain reported pretax income using FIFO pricing of $577,000. Show comparative income statements for Teal Mountain beginning with “Income before income tax,” as presented in the 2017 income statement. The tax rate for all years is 30%. 2017 2016 2015 Income before income tax $enter a dollar amount $enter a dollar amount $enter a dollar amount Income tax enter a dollar amount enter a dollar amount enter a dollar amount Net Income $enter a total amount $enter a total amount $enter a total amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
During 2017, Teal Mountain Inc. changed from LIFO to FIFO inventory pricing. Teal Mountain began operations in 2015 and its pretax income in 2016 and 2015 under LIFO was $470,000 and $562,000, respectively. Pretax income using FIFO pricing in the prior years would have been $504,000 in 2015 and $615,000 in 2016. In 2017, Teal Mountain reported pretax income using FIFO pricing of $577,000. Show comparative income statements for Teal Mountain beginning with “Income before income tax,” as presented in the 2017 income statement. The tax rate for all years is 30%.
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2017
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2016
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2015
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||||
|---|---|---|---|---|---|---|
| Income before income tax |
$enter a dollar amount
|
$enter a dollar amount
|
$enter a dollar amount
|
|||
| Income tax | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||
| Net Income |
$enter a total amount
|
$enter a total amount
|
$enter a total amount
|
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