-If Addison Uses LIFO,the Cost of the Ending Merchandise Inventory

question 34

Multiple Choice

$\begin{array}{l}\begin{array}{lll}\text { Sep. } & 1& \text { Inventory } \\&4 & \text { Sold } \\& 10 & \text { Purchased } \\& 17 & \text { Sold } \\& 30 & \text { Purchased } \\\end{array}\begin{array}{lll}\quad\quad\quad\quad\quad\quad\\\end{array}\begin{array}{lll}20& \text { units at \$20 } \\10& \text { units } \\30& \text { units at \$25 } \\20& \text { units } \\10& \text { units at \$30 } \\\end{array}\end{array}$
-If Addison uses LIFO,the cost of the ending merchandise inventory on September 30 is

• A)$800
• B)$650
• C)$750
• D)$700

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Definitions:

Projects

Specific, planned activities with defined goals and objectives, undertaken to achieve a desired outcome.

CCA Class

Stands for Capital Cost Allowance Class, a categorization in tax systems for depreciation of assets for tax purposes.

Pre-tax Cost Reduction

A reduction in expenses that occurs before taxes have been applied, aimed at improving a company's profitability.

Tax Bracket

A range of income amounts that are taxed at a particular rate. Tax brackets result in higher income being taxed at higher rates.