REFERENCE: Ref.08_10 Baker Corporation Changed from the LIFO Method to the FIFO

question 83

Multiple Choice

REFERENCE: Ref.08_10
Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2008.Baker has an effective income tax rate of 30 percent and 100,000 shares of common stock issued and outstanding.The following additional information is available:

-Assuming Baker makes the change in the first quarter of 2008,how much is reported as net income for the first quarter of 2008?

• A)$492,000.
• B)$494,800.
• C)$500,000.
• D)$505,200.
• E)$527,950.

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