Calculate accounting income

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Question - On 1 January 20X1, Tyler Trading Corp. was incorporated by Jim Tyler, who owned all the common shares. His original investment was $130,000. Inventory transactions over the subsequent three years were as follows:

02 January 20X1 Purchased 20 units for resale at $5,600 each. Throughout 20X1 Sold 19 units for an average of $8,600 each.

31 December 20X1 Remaining one units have a selling market value of $6,600 each.

15 July 20X2 Bought five units for resale at $7,600 each. Throughout 20X2 Sold four units at an average of $13,200 each.

31 December 20X2 Remaining two units have a selling market value of $10,600 each. Throughout 20X3 Sold all two remaining units at $9,600 each.

Required -

1. Calculate accounting income, based on transactions, for 20X1, 20X2, and 20X3. Assume FIFO.

2. Calculate economic income, based on events or changes in value, for 20X1, 20X2, and 20X3.

Reference no: EM132920865

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