Which of the Following Businesses Is Most Likely to Benefit
Which of the following businesses is most likely to benefit from an election to account for its inventory under LIFO?
A)a company producing the newest version of a tablet with ultra-long battery life.It believes it has a one-year lead over the competition.
B)a company producing products with copper as a key component.Copper prices fluctuate widely.
C)a company producing parts for the auto industry.Costs in this field tend to steadily climb.
D)None of the above.
Lloyd Corporation,a calendar year accrual basis taxpayer,pays its insurance premium each year on June 1,the anniversary of the policy.The premium paid this year is $9,600 while last year's was $9,000.How much of is Lloyd's deduction for insurance this year?
In 2013 Anika Co.adopted the simplified dollar-value LIFO method.Inventory under FIFO in 2013 and 2014 is $400,000 and $600,000,respectively.The Consumer Price Index for 2013 is 115 and the Consumer Price Index in 2014 is 125 percent.How much is Anika's inventory at the end of year 2014 under simplified LIFO?
In 2014,Modern Construction Company entered into a contract to construct a building for $5,000,000.The estimated cost to complete the building is $4,000,000 and the project will be completed in 2015.Modern incurred actual construction costs of $1,600,000 and $1,800,000 in 2014 and 2015,respectively.How much gross profit is recognized using the percentage-of-completion method in 2014 and 2015?