Southeast Inc. has maintained a periodic inventory system and the LIFO inventory method for over...
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Southeast Inc. has maintained a periodic inventory system and the LIFO inventory method for over 20 years. The earliest layers of LIFO inventory of 66,000 units date back 15 years. The company had beginning inventory (January 1) made up of the following three layers. At its December 31 year-end, an involuntary liquidation of beginning inventory occurred. Beginning inventory dropped to 88,000 units. The current replacement value of inventory is $50. a. What is the effect of the LIFO liquidation on after-tax profit or loss assuming a 25% tax rate? $ b. What disclosure is required based on the answer to part a? The LIFO liquidation financial statements. The effect of the LIFO liquidation is to must be disclosed in the notes to the by $ which in turn. causes taxes to
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