The Baker Company uses the LIFO inventory valuation method and reported its inventory at $ 200000 and its COGS at $ 500000. The company’ s LIFO reserve increased from $ 5000 to $ 30000 during the year. What amounts would the company report if it were to use the FIFO method Ending Inventory COGS（）

单项选择题A firm ended the last period with inventory of $ 4.0 million and a last in, first out (LIFO) reserve of $175000. During the year, it made purchases of $ 2. 0 million and reported sales of $ 5.5 million with a gross margin of 0.32. At the end of the year, it reported a LIFO reserve of $ 75000. What is the value of the firm’ s cost of goods sold (COGS) on a first in, first out (FIFO) basis

单项选择题On 31 December 2003, Zapp Company executed a 12-year lease with annual payments of $ 900000 beginning 31 December 2004, for factory equipment. The economic life of the equipment was 18 years. The interest rate implicit in the lease was eight percent. Zapp’ s incremental borrowing rate was 11 percent. Zapp may purchase the equipment at the end of the lease at the then-current fair market value of the equipment. The fair market value of the equipment at the inception of the lease was $ 8000000. Zapp’ s Income Statement for the year ended 31 December 2004, is as follows (note that this statement is prepared under the assumption that the factory equipment lease was a capital lease) :Sales$ 22000000Cost of Goods Sold( 9000000 )Gross Profit13000000Depreciation on Lease(565206)Other Depreciation( 2900000 )Sales and Administration(2600000)Operating Profit6934.794lnterest Expense on Lease(542838)Other Interest Expense( 1900000 )Income Taxes( 2000000 )Net Income$ 2491956 After considering whether the factory equipment lease should be reclassified as an operating lease and holding income taxes constant at $ 2000000, Zapp’ s net profit margin will:（）

A. decrease from 11.33 percent to 9.67 percent.  
B. increase from 11.33 percent to 15.42 percent.  
C. increase from 11.33 percent to 12.27 percent.