11. Biscoe. has historically used FIFO inventory costing method. In year 4 the company decided to...

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11. Biscoe. has historically used FIFO inventory costing method. In year 4 the company decided to switch to LIFO. The change caused net income in year 4 to be $ 44 million. If the company had used LIFO in year 3 the COGS would have been higher by $6 million to be higher that year. Year 1 and year 2 information is not available because of poor accounting and record keeping. Last year the company reported the following net income in its comparative income statements. net income year 1 $70 year 2 $ 60 year 3 52 a. prepare the journal entry at the beginning of year 4 to record the change in accounting principle. b. are changes in accounting principle applied prospectively or retrospectively? C. what amounts will the company report for the net income in its year 2 to 4 comparative income statements. 11. Biscoe. has historically used FIFO inventory costing method. In year 4 the company decided to switch to LIFO. The change caused net income in year 4 to be $ 44 million. If the company had used LIFO in year 3 the COGS would have been higher by $6 million to be higher that year. Year 1 and year 2 information is not available because of poor accounting and record keeping. Last year the company reported the following net income in its comparative income statements. net income year 1 $70 year 2 $ 60 year 3 52 a. prepare the journal entry at the beginning of year 4 to record the change in accounting principle. b. are changes in accounting principle applied prospectively or retrospectively? C. what amounts will the company report for the net income in its year 2 to 4 comparative income statements.