Dole Industries Had the Following Inventory Transactions Occur During 2022

question 22

Multiple Choice

Dole Industries had the following inventory transactions occur during 2022: The company sold 255 units at $126 each and has a tax rate of 30%.Assuming that a periodic inventory system is used, and operating expenses of $2,500, what is the company's after-tax income using LIFO? (rounded to whole dollars)

• A)$5,220
• B)$5,404
• C)$4,186
• D)$3,654

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Definitions:

Treasury Stock

Refers to shares that were once part of the outstanding shares, but were bought back by the company and are being held in the company's treasury.

Common Stockholders

Individuals or entities that own shares in a corporation, granting them rights to dividends and a vote in certain corporate matters.

Rights Granted

Rights Granted refers to permissions or privileges given to an individual or entity, which allows them certain freedoms or abilities under specific conditions.

Noncumulative

A term often related to preferred stock, describing dividends that, if not declared by the board of directors, are not owed to shareholders and do not accumulate.