During 2019 (its first year of operations) and 2020, Fieri Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2021, Fieri decided to change to the average method for both financial reporting and tax purposes. Income components before income tax for 2019, 2020, and 2021 were as follows:

($ in millions) 2019 2020 2021

Revenues $ 430 $440 $470

Cost of goods sold (FIFO) (43) (45) (51)

Cost of goods sold (average) (62) (66) (72)

Operating expenses (262 ) (270) (274)

Dividends of $24 million were paid each year. Fieri’s fiscal year ends December 31.

Required:

1. Prepare the journal entry at

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.