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High Life Company's inventory records for its retail division show the following at July 31: (Click the icon to view the accounting records.) At July 31, 11 of these units are on hand. High Life Company calculated its cost of goods sold using LIFO as $2,502 and its cost of goods sold using FIFO as $2,395. Read the requirement. How much in taxes would High Life Company, save by using the LIFO method versus FIFO? Sales revenue is

High Life Company's inventory records for its retail division show the following at July 31: (Click the icon to view the accounting records.) At July 31, 11 of these units are on hand. High Life Company calculated its cost of goods sold using LIFO as $2,502 and its cost of goods sold using FIFO as $2,395. Read the requirement. How much in taxes would High Life Company, save by using the LIFO method versus FIFO? Sales revenue is

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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K High Life Company's inventory records for its retail division show the following at July 31: (Click the icon to view the accounting records.) At July 31, 11 of these units are on hand. High Life Company calculated its cost of goods sold using LIFO as $2,502 and its cost of goods sold using FIFO as $2,395. Read the requirement. How much in taxes would High Life Company, save by using the LIFO method versus FIFO? Sales revenue is $8,050, operating expenses are $1,800, and the income tax rate is 25%. (Round your answer to the nearest cent.) Difference in methods x Income tax rate (entered as a whole number) Tax savings using LIFO % Data table Jul 1 Beginning inventory Jul 15 Purchase Jul 26 Purchase 8 units @ $170 = $1,360 5 units @ $171 $855 12 units @$180 $2,160 Print Done - X
Transcribed Image Text:K High Life Company's inventory records for its retail division show the following at July 31: (Click the icon to view the accounting records.) At July 31, 11 of these units are on hand. High Life Company calculated its cost of goods sold using LIFO as $2,502 and its cost of goods sold using FIFO as $2,395. Read the requirement. How much in taxes would High Life Company, save by using the LIFO method versus FIFO? Sales revenue is $8,050, operating expenses are $1,800, and the income tax rate is 25%. (Round your answer to the nearest cent.) Difference in methods x Income tax rate (entered as a whole number) Tax savings using LIFO % Data table Jul 1 Beginning inventory Jul 15 Purchase Jul 26 Purchase 8 units @ $170 = $1,360 5 units @ $171 $855 12 units @$180 $2,160 Print Done - X
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