Problem
Bramble Company began operations in 2015 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2017, in accordance with other companies in its industry, Bramble changed its inventory pricing to FIFO. The pretax income data is reported below.
|
Year
|
Weighted-Average
|
FIFO
|
|
2015
|
$387,100
|
$402,400
|
|
2016
|
392,500
|
422,000
|
|
2017
|
430,800
|
463,500
|
(a) What is Bramble's net income in 2017? Assume a 35% tax rate in all years.