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A Physical Inventory on December 31 Shows 2,000 Units on Hand.Holliday

Question 40

Multiple Choice

A physical inventory on December 31 shows 2,000 units on hand.Holliday sells the units for ₤6 each.The company has an effective tax rate of 20%.Holliday uses the periodic inventory method.If the company uses FIFO, what is the gross profit for the period? A) ₤1,000 B) ₤5,000 C) ₤10,500 D) ₤19,000 A physical inventory on December 31 shows 2,000 units on hand.Holliday sells the units for ₤6 each.The company has an effective tax rate of 20%.Holliday uses the periodic inventory method.If the company uses FIFO, what is the gross profit for the period?


A) ₤1,000
B) ₤5,000
C) ₤10,500
D) ₤19,000

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