Ask Experts Questions for FREE Help !
Ask
    vickyg's Avatar
    vickyg Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Nov 17, 2011, 08:41 PM
    Income tax expense?
    Sales revenue $1,000,000
    Cost of goods sold 600,000
    Gross margin 400,000
    Operating expenses 250,000
    Income before income taxes $150,000
    *based on an ending FIFO inventory of $250,000

    The income tax rate is 40%. The controller of the company is considering a switch from FIFO to LIFO. He has determined that on LIFO basis, the ending inventory would have been $180,000.

    What effect, if any, would the proposed change have on income tax expense? Net income? Cash flow?

Check out some similar questions!

How to find total income tax expense [ 2 Answers ]

This is Tomomi. Could you please help me to understand tax accounting. How to find estimated depreciation expense amount from tax returns form. Thank you.

Income Tax Expense [ 1 Answers ]

How would I determine Income tax Expense. Rate is 34% The different transactions that occurred were: 1. Sales revenues of $300,000, of which $200,000 was on credit; cost, provided by perpetual inventory record, $172,500. Hint: when perpetual system is used, two entries are made to record a...

Income Tax expense [ 1 Answers ]

I am having trouble understanding the material here. How can I calculate income tax expense for the year ending 2005. Here is the income statement I am working on: KROGER CO 10-K/A 2005-01-29: ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Any Suggestions would help. Thanks

Income Tax Expense [ 1 Answers ]

A Company reported $350,000 in income before income tax for financial reporting (book) purposes in Year 3, its first year of operation. The tax depreciatin exceeded its book depreciation by $30,000. The tax rate for Year 3 and all future years is 40%. Income tax expense reported on the company...

View more questions Search
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.