Brown Corporation Uses the FIFO Method for Internal Reporting Purposes

question 21

Multiple Choice

Brown Corporation uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes.The balance in the LIFO Reserve account at the end of 2007 was $60,000.The balance in the same account at the end of 2008 is $90,000.Brown's Cost of Goods Sold account has a balance of $450,000 from sales transactions recorded during the year.What amount should Brown report as Cost of Goods Sold in the 2008 income statement?

• A)$420,000.
• B)$450,000.
• C)$480,000.
• D)$540,000.

---

Definitions:

Acute Stress Disorder

A disorder, like PTSD, that is characterized by feelings of anxiety and helplessness and caused by a traumatic event; acute stress disorder occurs within a month of the event and lasts from two days to four weeks.

Traumatic Event

A deeply disturbing or distressing experience that can lead to lasting psychological and emotional impact.

Dissociative Amnesia

Loss of memory of personal information that is thought to stem from psychological conflict or trauma.

Organic Problems

Health issues that originate from physical or biological factors, rather than psychological ones.