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Question - During 2020, Sunland Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2019 and 2018 (Sunland's first year of operations) under FIFO was $177,990 and $189,610, respectively. Pretax income using weighted-average pricing in the prior years would have been $158,700 in 2019 and $172,800 in 2018. In 2020, Sunland reported pretax income (using weighted-average pricing) of $220,900. Show comparative income statements for Sunland, beginning with "Income before income tax," as presented on the 2020 income statement.
Financial Statement Analysis and Preparation
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