Question
In 20X2, the Robinson Company switched its inventory method from FIFO to average cost. Inventories at the end of 20X1 were reported in the balance
In 20X2, the Robinson Company switched its inventory method from FIFO to average cost. Inventories at the end of 20X1 were reported in the balance sheet at $22 million. If the average cost method had been used, 20X1 ending inventory would have been $20 million. The company's tax rate is 25%. The adjustment to 20X2s beginning retained earnings would be:
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Finance The Basics
Authors: Erik Banks
3rd Edition
1138919780, 9781138919785
