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NEW QUESTION: 1
A firm using LIFO accounting has a LIFO reserve of 900, with a LIFO ending inventory of 8,100. It is currently in the 40% tax bracket. If it switches to FIFO accounting, which of the following is true?
I. Its ending FIFO inventory equals 7,200
II. Its deferred taxes decrease by 360
III. Its equity increases by 540
A. I, II & III
B. I & III
C. II & III
D. III only
Answer: D
Explanation:
Explanation/Reference:
Explanation:
LIFO Reserve = FIFO Ending inventory value - LIFO Ending inventory value Therefore, the ending inventory under FIFO = 8,100 + 900 = 9,000. The deferred taxes increase by 900*0.4 = 360 and the equity increases by 900*(1-0.4) = 540.

NEW QUESTION: 2

A. Option D
B. Option B
C. Option C
D. Option A
Answer: D

NEW QUESTION: 3
Following HPE best practices, when would you use the P2 SAS expansion port?
A. When adding a second AFS2 shelf on an AF7000 array.
B. When adding a second AFS2 shelf on an AF3000 array.
C. In a scale-out configuration with 4x AF9000 arrays.
D. When adding a first AFS2 shelf on an AF5000 array.
Answer: C