Computing Ending Inventory using Dollar-Value LIFOOn January 1 of Year 5, Benn Company changed from FIFO to LIFO for income tax and external reporting purposes. At that date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $84,000. The following information is availablefrom Benn's records for Year 5 through Year 8.Year Ending Inventory on a FIFO Basis Price IndexYear 5$99,0001.1Year 6104,4001.2Year 7120,9001.3Year 8120,0001.2RequiredCompute the ending inventory on a dollar-value LIFO basis for Year 5, Year 6, Year 7, and Year 8.Note: Do not round until your final answer. Round your final answer to the nearest whole dollarDollar-value LIFO ending inventory, Year 5 $Dollar-value LIFO ending inventory, Year 6 $Dollar-value LIFO ending inventory, Year 7 $Dollar-value LIFO ending inventory, Year 8 $0000

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Description: Computing Ending Inventory using Dollar-Value LIFOOn January 1 of Year 5, Benn Company changed from FIFO to LIFO for income tax and external reporting purposes. At that date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $8

Dollar value LIFO method: This method is different model for the last-in first layering model. Under…

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Computing Ending Inventory using Dollar-Value LIFO On January 1 of Year 5, Benn Company changed from FIFO to LIFO for income tax and external reporting purposes. At that date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $84,000. The following information is available from Benn's records for Year 5 through Year 8. Year Ending Inventory on a FIFO Basis Price Index Year 5 $99,000 1.1 1.2 104,400 120,900 1.3 120,000 1.2 Year 6 Year 7 Year 8 Required Compute the ending inventory on a dollar-value LIFO basis for Year 5, Year 6, Year 7, and Year 8. Note: Do not round until your final answer. Round your final answer to the nearest whole dollar Dollar-value LIFO ending inventory, Year 5 $ Dollar-value LIFO ending inventory, Year 6 $ Dollar-value LIFO ending inventory, Year 7 $ Dollar-value LIFO ending inventory, Year 8 $ 0 0 0 0

Computing Ending Inventory using Dollar-Value LIFO On January 1 of Year 5, Benn Company changed from FIFO to LIFO for income tax and external reporting purposes. At that date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $84,000. The following information is available from Benn's records for Year 5 through Year 8. Year Ending Inventory on a FIFO Basis Price Index Year 5 $99,000 1.1 1.2 104,400 120,900 1.3 120,000 1.2 Year 6 Year 7 Year 8 Required Compute the ending inventory on a dollar-value LIFO basis for Year 5, Year 6, Year 7, and Year 8. Note: Do not round until your final answer. Round your final answer to the nearest whole dollar Dollar-value LIFO ending inventory, Year 5 $ Dollar-value LIFO ending inventory, Year 6 $ Dollar-value LIFO ending inventory, Year 7 $ Dollar-value LIFO ending inventory, Year 8 $ 0 0 0 0

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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