To participate in the following discussions, go to this week’s Discussion link in the left navigation.
- LIFO vs. FIFO
The controller of Sagehen Enterprises believes that the company should
switch from the LIFO method to the FIFO method. The controllerâ€™s
bonus is based on the next income. It is the controllerâ€™s belief
that the switch in inventory methods would increase the net income of the
company. What are the differences between the LIFO and FIFO
Analyze several of your peersâ€™ posts. Let at least two of your peers
know if a company is better off it switches from a LIFO method to a FIFO
method? Explain your reasoning.
A variety of depreciation methods are used to allocate the cost of an
asset to all of the accounting periods benefited by the use of the
asset. Your client has just purchased a piece of equipment for
$100,000. Explain the concept of depreciation. Which of
the following depreciation methods would you recommend: straight-line
depreciation, double declining balance method, or an alternative method?
Let at least two of your peers know if a company would use an accelerated
depreciation method for their financial statements or their tax
returns. Why do you believe this would be the case?
To complete the following assignment, go to this week’s Assignment link in the left navigation.
Please complete each of the exercises below in a word document. Save the
document, and submit to in week using the Assignment Submission