Use the Following Information for

question 48

Multiple Choice

Use the following information for
RF Company had January 1 inventory of $100,000 when it adopted dollar-value LIFO.During the year, purchases were $600,000 and sales were $1,000,000.December 31 inventory at year-end prices was $143,360, and the price index was 112.
-What is RF Company's ending inventory?

• A)$100,000.
• B)$128,000.
• C)$131,360.
• D)$143,360.

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Definitions:

Net Income

After-tax and expense deductions from total revenue, the remaining profits of a company.

Cash Dividends

Cash distributions given by a company to its stockholders out of its earnings.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.

Par Value

Par value, also known as nominal value, is the legally documented worth of a security's share, such as stocks or bonds, at the time of its issuance.