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Business, 01.11.2019 04:31 sophiaroeloffs4348

Aaa hardware uses the lifo method to value its inventory. inventory at the beginning of the year consisted of 10,000 units of the company’s one product. these units cost $15 each. during the year, 60,000 units were purchased at a cost of $18 each and 64,000 units were sold. near the end of the fiscal year, management is considering the purchase of an additional 5,000 units at $18.

required:
1. what would be the effect of this purchase on income before income taxes?
income before income taxes would be $

2. what would be the effect of this purchase on income before income taxes using fifo method?
income before income taxes would be $

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