During 2020, Bonita Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2019 and 2018 (Bonita's first year of operations) under FIFO was $174,100 and $197,880, respectively. Pretax income using weighted-average pricing in the prior years would have been $151,800 in 2019 and $182,000 in 2018. In 2020, Bonita reported pretax income (using weighted- average pricing) of $203,000. Show comparative income statements for Bonita, beginning with "Income before income tax," as presented on the 2020 income statement. (The tax rate in all years is 30%.) Income before income tax Income tax Net Income $ $ +A 2020 $ $ 2019 $ $ 2018
During 2020, Bonita Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2019 and 2018 (Bonita's first year of operations) under FIFO was $174,100 and $197,880, respectively. Pretax income using weighted-average pricing in the prior years would have been $151,800 in 2019 and $182,000 in 2018. In 2020, Bonita reported pretax income (using weighted- average pricing) of $203,000. Show comparative income statements for Bonita, beginning with "Income before income tax," as presented on the 2020 income statement. (The tax rate in all years is 30%.) Income before income tax Income tax Net Income $ $ +A 2020 $ $ 2019 $ $ 2018
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During 2020, Bonita Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2019 and 2018 (Bonita's
first year of operations) under FIFO was $174,100 and $197,880, respectively. Pretax income using weighted-average pricing in the
prior years would have been $151,800 in 2019 and $182,000 in 2018. In 2020, Bonita reported pretax income (using weighted-
average pricing) of $203,000. Show comparative income statements for Bonita, beginning with "Income before income tax," as
presented on the 2020 income statement. (The tax rate in all years is 30%.)
Income before income tax $
Income tax
Net Income
$
2020
$
+A
$
2019
$
$
LA
2018
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