Romanoff Industries Had the Following Inventory Transactions Occur During 2015

question 37

Multiple Choice

Romanoff Industries had the following inventory transactions occur during 2015: The company sold 150 units at $70 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 LIFO? (rounded to whole dollars)

• A)$2,323
• B)$2,486
• C)$3,318
• D)$3,552

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Definitions:

Dram Shop Acts

Laws in several U.S. states that impose liability on establishments serving alcoholic drinks to intoxicated persons or minors who subsequently cause harm to others.

Bartenders

Individuals who mix and serve alcoholic beverages and other drinks to customers in bars, clubs, or similar establishments.

Bar Owners

Individuals or entities that own establishments serving alcoholic beverages to the public.

Seeking Damages

The legal process of requesting compensation for losses or harm suffered.