In 2019,Richard's Department Store Changes Its Inventory Method from FIFO

question 102

Multiple Choice

In 2019,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: 2018 - $300,000; 2019 - $350,000.The 2018 price index is 110% and the 2019 index is 120%.The 2019 ending inventory after adopting the LIFO method is

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

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Definitions:

Industrially Advanced Countries

Nations with highly developed economies characterized by significant industrial growth, technological advancement, and high standard of living.

Progressive Tax

A tax system where the tax rate increases as the taxable amount or income grows, aiming at a fairer distribution of wealth.

Tax Rates

The percentage at which an individual or corporation is taxed by the government.

Entrepreneurial Income

Income generated from running a business, taking into account the risks and rewards of entrepreneurship.