Caspar Corp

question 43

Multiple Choice

Caspar Corp.began operations on January 1, 2016, and uses FIFO to cost its inventory.Management is contemplating a change to the average cost method and is interested in determining what effect such a change will have on pre-tax income.Accordingly, the following information has been developed: Based upon the above information, a change to the average cost method in 2017 would result in pre-tax income for 2017 of

• A)$395,000.
• B)$430,000.
• C)$470,000.
• D)$490,000.

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Definitions:

European Powers

Refers to the nations of Europe with significant political, military, and economic influence, especially noted during the colonial and imperial periods.

New Colonies

Territories that have been recently established or acquired by a country, typically overseas, for the purpose of expansion, settlement, and exploitation.

Missouri Compromise

A significant legislative agreement passed in 1820 in the United States, admitting Missouri as a slave state and Maine as a free state, maintaining a balance between slave and free states.

Slavery Extension

The political and social debate over the expansion of slavery into new territories or states in a country.