On January 1, 2023, Canox Ltd. changed its inventory valuation method from weighted-average cost to FIFO for
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On January 1, 2023, Canox Ltd. changed its inventory valuation method from weighted-average cost to FIFO for financial statement and income tax purposes, to make its reporting reliable and more relevant. The change resulted in a $900,000 increase in the beginning inventory at January 1, 2023. Assume a 25% income tax rate. For the year ended December 31, 2023, what is the cumulative effect of this accounting change?
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Related Book For
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris
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