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Hannah Idaho, a sole proprietor, is required to change her accounting method for inventories following an IRS audit of their 2013 tax return. Hannah had

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Hannah Idaho, a sole proprietor, is required to change her accounting method for inventories following an IRS audit of their 2013 tax return. Hannah had been using the incorrect method for the past five years, and the proposed Code Sec. 481 involuntary adjustment of $40,000 is composed of the following amounts: How should Hannah handle the reporting of this adjustment? Explain

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