During 2013, WW Inc

question 94

Multiple Choice

During 2013, WW Inc. reduced its LIFO eligible inventory quantities due to a problem with its major supplier. The effect of this liquidation was to increase its cost of goods sold by approximately $50 million. WW has a 40% income tax rate. If WW had not experienced these supplier problems and the resulting liquidation:

• A)Its 2013 net income would have been $30 million lower because inventory purchase prices were rising.
• B)Its 2013 net income would have been $30 million lower because inventory purchase prices were declining.
• C)Its 2013 net income would have been $30 million higher because inventory purchase prices were rising.
• D)Its 2013 net income would have been $30 million higher because inventory purchase prices were declining.

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Definitions:

Black and Latino Families

Family units identified by their African American or Latino heritage, each with distinct cultural, social, and historical experiences in the United States.

Ghettoization

The process of confining a particular group, typically a minority group, to certain areas of a city or town, often associated with social, legal, or economic pressure.

Massey and Denton

Sociologists known for their influential work on race and housing in the United States, particularly their study on American apartheid and the residential segregation of blacks.

African Americans

A term referring to citizens or residents of the United States who have total or partial ancestry from any of the black racial groups of Africa.