Bourne Company (a fictional company) has the following inventory note in its 20X3 annual report. Bourne Company December 31 ($ in millions) 20X3 20X2 Raw materials and work in process $ 3,943 $ 5,870 Finished goods 5,016 2,623 8,959 8,493 Less revaluation to LIFO (420 ) (560 ) $ 8,539 $ 7,933 LIFO revaluations decreased $140 million in 20X3, compared with decreases of $169 million in 20X2 and $82 million in 20X1. Included in these changes were decreases of $30 million, $12 million, and $3 million in 20X3, 20X2, and 20X1, respectively, that resulted from lower LIFO inventory levels. There were net cost decreases in each of the last three years. Bourne’s earnings before income taxes were $20.0 billion in 20X3. Assume a 21% marginal tax rate. Required: 1. What are the total cumulative tax savings as of December 31, 20X3, that Bourne has realized as a result of using the LIFO inventory method? 2. What would Bourne’s pre-tax earnings have been in 20X3 if it had been using FIFO? 3. What December 31, 20X3, balance sheet amounts would be different—and by how much—if Bourne had used FIFO to account for its inventories? 4. What were the LIFO liquidation profits reported in 20X3 both pre-tax and after-tax?

Eliminating entries (including goodwill impairment) and worksheets for various years on january 1, 2013, porter company purchased an 80% interest in the capital stock of salem company for$850,000. at that time, salem company had capital stock of $550,000 and retained earnings of $80,000.differences between the fair value and the book value of the identifiable assets of salem company were asfollows: fair value in excess of book valueequipment$130,000land65,000inventory40,000the book values of all other assets and liabilities of salem company were equal to their fair values onjanuary 1, 2013. the equipment had a remaining life of five years on january 1, 2013. the inventory was sold in2013.salem company’s net income and dividends declared in 2013 and 2014 were as follows: year 2013 net income of $100,000; dividends declared of $25,000year 2014 net income of $110,000; dividends declared of $35,000required: a.prepare a computation and allocation schedule for the difference between book value of equity acquired andthe value implied by the purchase price.b.present the eliminating/adjusting entries needed on the consolidated worksheet for the year endeddecember 31, 2013. (it is not necessary to prepare the worksheet.)lo6lo1

Why has the free enterprise system been modified to include some government intervention?

Leon and sara are arguing over when the best time is to degrease soup. leon says that it's easiest to degrease soup when it's boiling. sara says it's easiest to degrease soup when it's cold. who is correct? a. neither leon nor sara is correct. b. leon is correct. c. both leon and sara are correct. d. sara is correct. student b   incorrect which following answer correct?