Cost of goods sold and income tax expenses
In periods of rising prices, which cost flow assumption produces the highest net income? Which produces the lowest net income? How about cost of goods sold and income tax expenses? How about ending inventory? What if prices fall?
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You buy 300 shares of Qualitycorp for $30 per share and deposit initial margin of 50%. The next day Qualitycorp"s price drops to $25 per share. What is your actual margin?
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