**Required:**1. Determine the amount of net income that International Paper would have reported in 2017 if it had used the FIFO method (assume a 30 percent tax rate). (**Enter your answer in millions. Round your intermediate and final answer to 1 decimal place.**)[Input Box] Net income ___________ million **Inventory Valuation Note from International Paper Company Annual Report****Summary:**- **Inventory Valuation Method:** The company uses the last-in, first-out (LIFO) inventory method for most of its U.S. inventories.- **Impact of Different Valuation Method:** - If the first-in, first-out (FIFO) method had been used, inventory balances would have been higher by approximately: - $293 million as of December 31, 2017 - $290 million as of December 31, 2016- **Financial Results (2017):** - **Net Income:** $2,144 million (after taxes) - **Retained Earnings (as of December 31, 2017):** $6,180 million.**Explanation of LIFO vs. FIFO:**- **LIFO (Last-In, First-Out):** Assumes the most recently acquired inventory is sold first.- **FIFO (First-In, First-Out):** Assumes the oldest inventory is sold first.- Using FIFO instead of LIFO typically results in higher inventory values on the balance sheet when prices are rising.

Name: **Required:**1. Determine the amount of net income that International
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Description: **Required:**1. Determine the amount of net income that International Paper would have reported in 2017 if it had used the FIFO method (assume a 30 percent tax rate). (**Enter your answer in millions. Round your intermediate and final answer to 1 de

FIFO method is First-in First-out method, which means inventory bought first should be sold first.…

Business

Accounting

[The following information applies to the questions displayed below.] An annual report for International Paper Company included the following note: The last-in, first-out inventory method is used to value most of International Paper's U.S. inventories... If the first- in, first-out method had been used, it would have increased total inventory balances by approximately $293 million and $290 million at December 31, 2017, and 2016, respectively. For the year 2017, International Paper Company reported net income (after taxes) of $2,144 million. At December 31, 2017, the balance of International Paper Company's retained earnings account was $6,180 million.

[The following information applies to the questions displayed below.] An annual report for International Paper Company included the following note: The last-in, first-out inventory method is used to value most of International Paper's U.S. inventories... If the first- in, first-out method had been used, it would have increased total inventory balances by approximately $293 million and $290 million at December 31, 2017, and 2016, respectively. For the year 2017, International Paper Company reported net income (after taxes) of $2,144 million. At December 31, 2017, the balance of International Paper Company's retained earnings account was $6,180 million.

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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