Examlex

Solved

In 2017 George Used the FIFO Lower of Cost or Market

question 69

Multiple Choice

In 2017 George used the FIFO lower of cost or market inventory method. As of December 31, 2017, the inventory cost was $50,000 and its market price was $40,000. At the time of filing his 2018 income tax return, George changed to the LIFO method. The ending inventory at cost on December 31, 2018, was $75,000 and the market price of the goods totaled $35,000. Which of the following statements is correct?


Definitions:

Emergency Banking Act

A law passed in 1933 during the Great Depression that aimed to stabilize the banking sector, restore public confidence, and prevent the failure of banks.

Roosevelt's Inauguration

The ceremony marking the beginning of Franklin D. Roosevelt's presidency, notable for his speech declaring the only thing to fear is "fear itself" during the Great Depression.

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold, ensuring stable prices and exchange rates.

Consumer Faith

The confidence and trust that consumers have in the quality, safety, and reliability of the products and services they purchase.

Related Questions