Includes bibliographical references.
|Statement||[by] Raymond A. Hoffman and Henry Gunders.|
|Contributions||Gunders, Henry, joint author.|
|LC Classifications||HF5681.S8 H59 1970|
|The Physical Object|
|Pagination||viii, 444 p.|
|Number of Pages||444|
|LC Control Number||75128350|
Additional Physical Format: Online version: Hoffman, Raymond A., Inventories; control, costing, and effect upon income and taxes. New York, Ronald Press . Inventories: a guide to their control, costing and effect upon income and taxes Raymond A. Hoffman Snippet view - Find many great new & used options and get the best deals for Inventories: Control, Costing, and Effect Upon Income and Taxes by Raymond A. Hoffman and Henry Gunders (, Hardcover) at the best online prices at eBay! Free shipping for many products! A general rule is that overstatements of ending inventory cause overstatements of income, while understatements of ending inventory cause understatements of income. Since financial statement users depend upon accurate statements, care must be taken to ensure that the inventory balance at the end of each accounting period is correct.
On the other hand, FIFO increases net income (due to the age of the inventory being used in cost of goods sold) and Increased net income can increase taxes owed. Using LIFO during periods of inflation tend to show and ending inventory amount on the balance sheet that is much lower than what the inventory is truly worth at current prices, this. Income from continuing operations (net of taxes) $ , Prior period adjustment (decrease in prior year net income, net of taxes) $ , Cash dividends paid to preferred stockholders $ , Gain from discontinued operations (net of taxes) $ , Non-recurring loss (net of tax benefit) $ , (Method change is acceptable if it will improve financial reporting) Requires statement notes report type of change, its justification, and its effect on income Lower-of-Cost-or-Market Using the lower of cost or market means comparing the market value of each item in ending inventory with its cost and then using the lower of the two as its. It soon became apparent that many other industries were also in need of special considerations from the standpoint of 7 Raymond A. Hoffman, Inventories —A Guide to Their Control, Costing, and Effect Upon Income and Taxes, , page Ibid., p. 11 determining income .
The First-In, First-Out (FIFO) method assumes that the first unit making its way into inventory–or the oldest inventory–is the sold first. For example, let's say that a bakery produces Inventory is something any entrepreneur selling a product will deal with in their day-to-day business. Inventory isn’t a tax deduction. Most people mistakenly believe that inventory is a line Author: Cameron Keng. Inventories consist of raw material, work-in-process and finished goods which are held by a business in ordinary course of business, either for sale or for the purpose of using them in the process of producing goods and services. Types of Inventory Raw Material. Raw material is a type of inventory which acts as the basic constituent of a product. How to Account for Inventory on Taxes. If your business maintains an inventory of goods for sale, you will need to account for inventory costs to determine your profits or losses at tax time. The amount of inventory costs you can deduct from your taxable income .