In the footnotes lifo reserve at the end of 2006 is 3000, Ask an Expert

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Co. uses LIFO inventory method. At the end of the 2006 accounting period, the company reported $10,000 of net earnings on I/S. The inventory balance on the 2006 B/S is $7,000. In the footnotes, LIFO reserve at the end of 2006 is $3,000 and LIFO reserve at the end of 2005 is $2,500. JJ Co. uses FIFO and reported 10,300 of net earnings on the 2006 I/S. Which company has a higher earnings if both of the companies would use the same inventory method?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M957300

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