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Question: Exercise 22-5 (Part Level Submission) Presented below are income statements prepared on a LIFO an…
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Exercise 22-5 (Part Level Submission)

Presented below are income statements prepared on a LIFO and FIFO
basis for Teal Company, which started operations on January 1,
2016. The company presently uses the LIFO method of pricing its
inventory and has decided to switch to the FIFO method in 2017. The
FIFO income statement is computed in accordance with the
requirements of GAAP. Teal’s profit-sharing agreement with its
employees indicates that the company will pay employees 10% of
income before profit-sharing. Income taxes are ignored.

LIFO Basis

FIFO Basis

2017

2016

2017

2016

Sales $2,970 $2,970 $2,970 $2,970
Cost of goods sold 1,180 1,040 1,100 910
Operating expenses 1,010 1,010 1,010 1,010
Income before profit-sharing 780 920 860 1,050
Profit-sharing expense 78 92 99 92
Net income $702 $828 $761 $958

Answer the following questions.

Question: Exercise 22-5 (Part Level Submission)Presented below are income statements prepared on a LIFO an...

Question: Exercise 22-5 (Part Level Submission)Presented below are income statements prepared on a LIFO an...

Question: Exercise 22-5 (Part Level Submission)Presented below are income statements prepared on a LIFO an...

Question: Exercise 22-5 (Part Level Submission)Presented below are income statements prepared on a LIFO an...

(a)

If comparative income statements are prepared, what net income
should Teal report in 2016 and 2017? (Round answers to
0 decimal places, e.g. 125.)

2017

2016

Net income $

Question: Exercise 22-5 (Part Level Submission)Presented below are income statements prepared on a LIFO an...

$

Question: Exercise 22-5 (Part Level Submission)Presented below are income statements prepared on a LIFO an...

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