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Holliday Company's inventory records show the following data:

A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for $12 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. If the company uses FIFO, what is the gross profit for the period?

a) $2,000

b) $10,000

c) $21,000

d) $38,000

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9403999

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