Black Corporation Uses the FIFO Method for Internal Reporting Purposes

question 90

Multiple Choice

Black 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 2014 was $140,000. The balance in the same account at the end of 2015 is $210,000. Black's Cost of Goods Sold account has a balance of $1,050,000 from sales transactions recorded during the year. What amount should Black report as Cost of Goods Sold in the 2015 income statement?

• A) $ 980,000.
• B) $1,050,000.
• C) $1,120,000.
• D) $1,260,000.

---

Definitions:

City Revenues

The income generated by a municipality from sources like taxes, fees, and grants which is used to fund public services.

Income Elasticity

A measure of how much the demand for a product changes in relation to a change in consumers' incomes.

Luxuries

Items or services that are considered non-essential but desirable, typically associated with high quality and a higher price.

Inelastic Demand

A situation where the quantity demanded of a good or service changes minimally in response to price changes.