Christman Co

question 71

Multiple Choice

Christman Co. adopts the simplified dollar-value LIFO method in 2012. Ending inventory at actual prices in 2012 and 2013 was $100,000 and $160,000, respectively. Assume that the consumer price index was 1.20 and 1.25 in 2012 and 2013. What cost will Christman Co. use as ending inventory for 2013?

• A) $160,000
• B) $155,833
• C) $153,600
• D) $150,000

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Definitions:

Zapata Test

A legal standard used to determine the independence and good faith of a special litigation committee's investigation and recommendations in corporate litigation.

Property Dividend

A type of dividend payment made in assets other than cash, such as stocks or physical assets.

Excess Liquidity

The situation where an organization or individual possesses more cash resources than are necessary for current operations or investments, potentially indicating underutilization of assets.

Common Shareholders

Shareholders who claim the residual profits and assets of a corporation, and usually have the exclusive power and right to elect the directors of the corporation.