Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2021. Baker has an effective income tax rate of 35% 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 2021, compute net income per common share.
A) $4.92.
B) $4.95.
C) $5.00.
D) $5.05.
E) $5.28.

Question

Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2021. Baker has an effective income tax rate of 35% 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 2021, compute net income per common share.
A) $4.92. 
B) $4.95. 
C) $5.00. 
D) $5.05. 
E) $5.28.

Quizplus · Accepted Answer

The Answer of Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2021. Baker has an effective income tax rate of 35% 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 2021, compute net income per common share.
A) $4.92. 
B) $4.95. 
C) $5.00. 
D) $5.05. 
E) $5.28.

Baker Corporation Changed from the LIFO Method to the FIFO