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

question 52

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 and that $400,000 net income is earned during the second quarter,how much is reported as net income for the second quarter of 2008?

• A)$400,000.
• B)$405,200.
• C)$427,950.
• D)$894,850.
• E)$905,200.

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Definitions:

Character Education

A direct moral education approach that involves teaching students a basic “moral literacy” to prevent them from engaging in immoral behavior or doing harm to themselves or others.

Moral Literacy

The ability to understand and apply ethical principles and values in various life situations.

Sense of Obligation

The feeling of being morally or legally bound to do something.

Juvenile Delinquency

Refers to a great variety of behaviors by an adolescent, ranging from unacceptable behavior to breaking the law.