Benjiko

the method given in the cirriculum is the change in equity equals to the after-tax rate of change in COGS. here, the answer seems to say that change in net income equals the LIFO reserve after tax. i am not sure which to use to calculate equity now. should I just remember as a fact now that LIFO reserve equals pretax income increase when converting LIFO to FIFO.


Am I reading the right Qbank?



Edited 1 time(s). Last edit at Monday, April 19, 2010 at 12:37PM by lzen5.