Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. southeast inc. has maintained a periodic inventory

Southeast Inc. has maintained a periodic inventory system and the LIFO inventory method for over...

50.1K

Verified Solution

Question

Accounting

image
Southeast Inc. has maintained a periodic inventory system and the LIFO inventory method for over 20 years. The earliest layers of LIFO inventory of 66,000 units date back 15 years. The company had beginning inventory (January 1) made up of the following three layers. At its December 31 year-end, an involuntary liquidation of beginning inventory occurred. Beginning inventory dropped to 88,000 units. The current replacement value of inventory is $50. a. What is the effect of the LIFO liquidation on after-tax profit or loss assuming a 25% tax rate? $ b. What disclosure is required based on the answer to part a? The LIFO liquidation financial statements. The effect of the LIFO liquidation is to must be disclosed in the notes to the by $ which in turn. causes taxes to

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students