Baker Corporation Changed from the LIFO Method to the FIFO

question 94

Multiple Choice

Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2013. 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 2012, how much is reported as net income for the first quarter of 2012?

• A) $300,000.
• B) $322,750.
• C) $335,000.
• D) $265,000.
• E) $277,250.

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Definitions:

Neuron

A specialized cell transmitting nerve impulses; a nerve cell, fundamental unit of the nervous system.

EPSP

Stands for Excitatory Postsynaptic Potential, a temporary increase in postsynaptic membrane potential caused by the flow of positively charged ions into the postsynaptic cell, making it more likely that the cell will fire an action potential.

Depolarization

A decrease in membrane potential that makes the interior of a cell less negative compared to the outside, crucial for nerve impulse transmission.

Voltage-Gated Channel

A type of protein channel in cell membranes that opens or closes in response to changes in electrical membrane potential.