What would the net income show on a comparative financial

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Reference no: EM132793849

In 2022, Karen Corp. changed method of inventory pricing from LIFO to FIFO. ignoring income taxes the net income computed on a LIFO as compared to a FIFO basis for the four years involved was :

              LIFO            FIFO
2019 78900    87300
2020 84500           88800
2021 86900         90300
2022 92900            92900

net income was

2019 87300
2020 88800
2021 90300
2022 92900

Assuming the company had switched from the average cost method to the FIFO method with net income on an average cost basis for the four years as follows:

2019, $ 80,400
2020, $86,120

2021, $ 90,300

2022, $93,600.

Problem 1: what would the net income show on a comparative financial statement issued on 12/31/22 for each of the four years ?

Reference no: EM132793849

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