Romanoff Industries Had the Following Inventory Transactions Occur During 2022

question 89

Multiple Choice

Romanoff Industries had the following inventory transactions occur during 2022: The company sold 150 units at $70 each and has a tax rate of 30%.Assuming that a periodic inventory system is used, what is the company's after-tax income (rounded to whole dollars) using LIFO?

• A)$2,323
• B)$2,486
• C)$3,318
• D)$3,552

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Definitions:

Anticline

A type of fold in sedimentary strata that appears as an arch-like structure, with the oldest layers at its core.

Strike-Slip Fault

A type of fault where the movement of the Earth's crust is primarily horizontal, parallel to the fault line.

Thrust Fault

A type of fault where rock strata are pushed upwards on one side due to compressional forces.

Normal Fault

A type of fault where the hanging wall slides downward relative to the footwall due to tensile stress in the Earth's crust.