In 2016,Richard's Department Store Changes Its Inventory Method from FIFO

question 109

Multiple Choice

In 2016,Richard's Department Store changes its inventory method from FIFO to LIFO.Richard's uses the simplified LIFO method.Richard's year-end inventory under FIFO is as follows: 2015 - $300,000;2016 - $350,000.The 2015 price index is 110% and the 2016 index is 120%.The 2016 ending inventory after adopting the LIFO method is

• A)$350,000.
• B)$320,833.
• C)$381,818.
• D)$322,727.

Identify how to calculate the shares issued during a stock conversion.

Analyze the impact of stock conversions on a company's balance sheet.

Distinguish between par value and market value of stock in the context of stock conversions.

Apply accounting principles to record stock conversions in financial statements.

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