Three Identical Units of Merchandise Were Purchased During March, as Shown

question 66

Essay

Three identical units of merchandise were purchased during March, as shown: $$\begin{array} { | c | l | l | l | } \hline & { \text { Steele Plate } } & \text { Units } & \text { Cost } \\\hline \text { Mar. } 3 & \text { Purchase } & 1 & \$ 830 \\\hline 10 & \text { Purchase } & 1 & 840 \\\hline 19 & \text { Purchase } & 1 & 880 \\\hline \text { Total } & & 3 & \$ 2,550 \\\hline\end{array}$$ Assume that one unit is sold on March 23 for $1,125. Determine the gross profit for March and ending inventory on March 31 using a) FIFO and b) LIFO.

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Definitions:

Earned Income Credit

The Earned Income Credit (EIC or EITC) is a refundable tax credit for low- to moderate-income working individuals and families, particularly those with children, to reduce the amount of tax owed and potentially return a portion of their earned income.

Disqualified Income

Types of income that cannot be considered or used for certain applications or benefits, as defined by specific rules or guidelines.

Dividends

Payments made by a corporation to its shareholder members, representing a portion of the corporate profits.

American Opportunity Tax Credit

A credit for qualified education expenses paid for an eligible student for the first four years of higher education, with the potential to receive a partial refund if the credit is more than the taxpayer owes.