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On January 1, 2021, Pluto Company changed its method of accounting for inventory from LIFO cost method to the FIFO method. This change caused the
On January 1, 2021, Pluto Company changed its method of accounting for inventory from LIFO cost method to the FIFO method. This change caused the 2021 beginning inventory to increase by $600,000. The cumulative effect of this accounting change to be reported on the income statement for the year ended December 31, 2021, assuming a 30% tax rate,
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