Question
1. On December31, 2019, Owl Co. changed its inventory valuation method from weighted average to FIFO for GAAP. The change results in a$450,000 decrease in
1.On December31, 2019, Owl Co. changed its inventory valuation method from weighted average to FIFO for GAAP. The change results in a$450,000 decrease in the beginning inventory at January 1, 2019. The tax rate is45%. The cumulative effect of this accounting change for 2019, in the statement of stockholders' equityis:
A) $202,500B) $450,000C) $247,500D) $0
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Financial And Managerial Accounting
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
4th Edition
1119752620, 978-1119752622
