Question & Answer: Ivanhoe Company began operations in 2015 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2017, in accorda…..

Ivanhoe 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, Ivanhoe changed its inventory pricing to FIFO. The pretax income data is reported below.

Year    Weighted-Average FIFO

2015    $384,700    $399,100

2016    $398,400    $422,600

2017    $426,600    $467,100

What is Ivanhoe’s net income in 2017? Assume a 35% tax rate in all years.