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During 2014, Williamson Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2013 and 2012 (Williamson’s first year of operations) under FIFO was $178,800 and $195,800, respectively. Pretax income using weighted-average pricing in the prior years would have been $160,600 in 2013 and $187,700 in 2012. In 2014, Williamson Company reported pretax income (using weighted-average pricing) of $210,300. Show comparative income statements for Williamson Company, beginning with “Income before income tax,” as presented on the 2014 income statement. (The tax rate in all years is 25%.)
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The General Fund transferred $100,000 to the Motor Pool Internal Service Fund to be used for general operating purposes
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