Baker Corporation Changed from the LIFO Method to the FIFO

question 59

Multiple Choice

Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2011. 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 2011, compute net income per common share.

• A) $4.92.
• B) $4.95.
• C) $5.00.
• D) $5.05.
• E) $5.28.

---

Definitions:

POP

Post Office Protocol, a standard protocol used to retrieve email from a mail server.

Email Service Provider

A company that offers email hosting services, allowing users to send and receive emails.

Outgoing Email Server

The server used for sending email from an email client; it routes outgoing emails to the recipient’s email server.

InfoBar

The InfoBar is an interface element that provides critical information about the document or email you're viewing, often seen in Microsoft Office applications.