Holliday Company's inventory records show the following data: A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for ₤3 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. Under the FIFO method, the December 31 inventory is valued at
A) ₤3,500.
B) ₤3,625.
C) ₤3,750.
D) ₤4,500.

Question

Holliday Company's inventory records show the following data:  A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for ₤3 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. Under the FIFO method, the December 31 inventory is valued at
A) ₤3,500. 
B) ₤3,625. 
C) ₤3,750. 
D) ₤4,500.

Quizplus · Accepted Answer

The Answer of Holliday Company's inventory records show the following data:  A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for ₤3 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. Under the FIFO method, the December 31 inventory is valued at
A) ₤3,500. 
B) ₤3,625. 
C) ₤3,750. 
D) ₤4,500.

Holliday Company's Inventory Records Show the Following Data: a Physical