Reference no: EM132326321
Question
How do you convert from LIFO to FIFO?
Land and a building are purchased for a group price of $1,240,000. How much of the purchase price should be allocated to BUILDING? when the land is appraised at $340,000 and the building on the land is appraised at $1,020,000
For Fun Corporation purchases new equipment for $1,400,000 on January 1, 2019. For fun estimates that the equipment has a $60,000 residual value and a useful life of 10 years.
For Fun uses the straight-line method to record depreciation. Assume this on January 1, 2021, For fun realizes that the new equipment actually has a total useful life of 7 years and a $80,000 residual value. A depreciation schedule would show -------------- depreciation expense for 2021?
When do you use LIFO or FIFO?