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Question - The RRR company currently reports their inventory balances under the LIFO inventory method. Information from the notes to the financial statements are included below:
LIFo Ending Inventory: $771,689
FIFO Ending inventory: $1,046,700
Beginning Retained Earnings: $13,567,000
Tax Rate: 21%
Directions:
1) Compute the LIFO Reserve.
2) Compute the change in deferred taxes payable from the LIFO Reserve analyst conversion.
3) Compute the impact on retained earnings from the LIFO Reserve analyst conversion.
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