Baker Corporation Changed from the LIFO Method to the FIFO

question 34

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:

Phrenology

A now-discredited theory that suggested the shape and size of the skull could determine a person's personality and mental abilities.

Joseph Gall

An early 19th-century neuroanatomist and physiologist known for developing phrenology, the study of skull shapes to determine mental faculties.

Lesion Method

A research technique involving the study of the effects of brain damage on behavior and mental processes.

Human Participants

Individuals who take part in research studies or experiments, often to provide data on human behavior, cognition, or physiology.