Baker Corporation Changed from the LIFO Method to the FIFO

question 54

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, how much is reported as net income for the first quarter of 2010?

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

---

Definitions:

Feelings Of Inferiority

Emotional states that arise from perceiving oneself as less capable, valuable, or worthy compared to others.

Psychosocial Theory

A framework that suggests an individual's psychological development is influenced by their social environment and interpersonal relations.

Sense Of Industry

The feeling of competence and achievement, typically developed during childhood, especially in response to social and academic demands.

Piaget's Stages

A theory outlining four stages of cognitive development in children, describing how their thinking evolves from simple to complex.