Shondee Corporation uses the lower of cost or market and FIFO inventory methods. At the end of 2019, the FIFO cost of the ending inventory was $181,000, and the market value of the inventory was $160,000. The corporation switched to LIFO in 2020. As a result, how much must Shondee add to its gross income for each of the years 2020, 2021, and 2022?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Shondee Corporation uses the lower of cost or market and FIFO inventory methods. At the end of 2019, the FIFO cost of the ending inventory was $181,000, and the market value of the inventory was $160,000. The corporation switched to LIFO in 2020. As a result, how much must Shondee add to its gross income for each of the years 2020, 2021, and 2022?

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Income per year = (Value under FIFO Method - Value Under Cost Method) / No.of year

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