Lee Industries Had the Following Inventory Transactions Occur During 2014

question 100

Multiple Choice

Lee Industries had the following inventory transactions occur during 2014: The company sold 204 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's after-tax income using FIFO? (rounded to whole dollars)

• A) $3,088
• B) $3,392
• C) $2,374
• D) $2,160

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Definitions:

Oceanic Crust

The part of the Earth's crust that underlies the ocean basins, generally thinner and more dense than continental crust, formed at mid-ocean ridges and recycled into the mantle at subduction zones.

Sheeted Dikes

A geological formation consisting of numerous parallel dikes formed when magma intrudes into a crack then solidifies.

Subduction-derived Magma

Magma that is formed by the melting of subducted oceanic crust beneath a continental plate.

Belts of Volcanoes

Regions characterized by the alignment of multiple volcanoes, often situated along the boundaries of tectonic plates where volcanic activity is concentrated.