Mixed-Motive Expenditures (Essay Sample)

Instructions:

The task was about advising lifo to limit these effects of inflation, to aid in lowering the taxes that the company pays. This is because, due to various factors in the world such as wars and pandemics, inflation of day to day products can greatly affect the production cost which means that the profitability of the company may be affected

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Content:

Mixed-Motive Expenditures
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Topic 1
A repeal of LIFO accounting for tax purposes will ensure that the company’s financial statements and profitability is not distorted and is accurately recorded. This is rather helpful to the company as it will ensure that the company’s earnings are correctly stated and thus avoiding any legal implications that are the product of understated financial statements. However, a repeal of LIFO may increase the amount of tax that the company pays. In this regard, LIFO is very important in maintaining low taxes especially under inflation. This allows for the company to maintain profitability even during inflation from the payment of low taxes. The

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Mixed-Motive Expenditures (Essay Sample)

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