Business, 03.12.2019 23:31 darlenepitre

During 2018, ww inc. reduced its lifo eligible inventory quantities due to a problem with its major supplier. the effect of this liquidation was to increase its cost of goods sold by approximately $50 million. ww has a 40% income tax rate. if ww had not experienced these supplier problems and the resulting liquidation:
a. its 2018 net income would have been $30 million lower b/c inventory purchase prices were rising.
b. it`s 2018, net income would have been $30 million lower b/c inventory purchase prices were declining.
c. its 2018, net income would have been $30 million higher because inventory purchase prices were rising.
d. its 2018, net income would have been $30 million higher b/c inventory purchase prices were declining.

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During 2018, ww inc. reduced its lifo eligible inventory quantities due to a problem with its major...

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