Nueva Company reported the following pretax data for its first year of operations. Net sales 7,460 Cost of goods available for sale 5,850 Operating expenses 1,758 Effective tax rate 25 % Ending inventories: If LIFO is elected 648 If FIFO is elected 828 What is Nueva's net income if it elects LIFO?

Nueva Company reported the following pretax data for its first year of operations. Net sales 7,460 Cost of goods available for sale 5,850 Operating expenses 1,758 Effective tax rate 25 % Ending inventories: If LIFO is elected 648 If FIFO is elected 828 What is Nueva's net income if it elects LIFO?

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

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Question

Nueva Company reported the following pretax data for its first year of operations.


Net sales	7,460
Cost of goods available for sale	5,850
Operating expenses	1,758
Effective tax rate	25	%
Ending inventories:
If LIFO is elected	648
If FIFO is elected	828

What is Nueva's net income if it elects LIFO?

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