A physical inventory, on December 31, shows 2,000 units on hand. Holliday sells the units for $12...
Question:
A physical inventory, on December 31, shows 2,000 units on hand. Holliday sells the units for $12 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. What is the difference in taxes if LIFO, rather than fifo, is used?
Taxes
Taxes are applicable on the basis of the net income. whatever amount will earn from different during the year after the deduction of all the expenses from the revenue.
Answer and Explanation: 1
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View this answer| Calculation of taxes | ||
|---|---|---|
| Particulars | Calculations | Amount |
| Sales revenue | 2000*12 | $24,000 |
| Cos... | ||
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Taxes are a percentage of the earnings that the government requires from the people. Learn how to account for sales, property and income taxes, and understand how taxes are defined.
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