Henri Company's Inventory Records Show the Following Data A Physical Inventory on December 31 Shows 3000 Units on l

question 60

Multiple Choice

Henri Company's inventory records show the following data: $$\begin{array} { l r r } & \underline { \text { Units } } & \underline { \text { Unit Cost } } \\\text { Inventory, January 1 } & 10,000 & \$ 9.20 \\\text { Purchases: June 18 } & 9,000 & 8.00 \\\text { November 8 } & 6,000 & 7.25\end{array}$$
A physical inventory on December 31 shows 3000 units on hand. Henri sells the units for $12 each. The company has an effective tax rate of 20%. Henri uses the periodic inventory method. If the company uses FIFO what is the gross profit for the period?

• A) $78250
• B) $84100
• C) $81400
• D) $84700

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Definitions:

Dependent Child

A child who meets certain IRS criteria, thereby allowing the taxpayer to claim certain tax benefits, such as the child tax credit.

Taxable Income

This is the portion of one's income that is subject to taxes, after all deductions, exemptions, and adjustments.

Interest Charged

The cost incurred for borrowing money, typically expressed as a percentage rate over a period of time.

IRS

The Internal Revenue Service, a U.S. federal agency responsible for the collection of taxes and enforcement of tax laws.