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On December 31,2024 , Sheridan Company changed its method of accounting for inventory from the average-cost method to the FIFO method. This change caused the

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On December 31,2024 , Sheridan Company changed its method of accounting for inventory from the average-cost method to the FIFO method. This change caused the 2024 beginning inventory to increase by $985000. The cumulative effect of this accounting change to be reported for the year ended 12/31/24, assuming a 20% tax rate, is $985000. S0. $788000 $197000

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