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Slider Company began operations in 2015 and for simplicity reasons, adopted weighted-average pricing for inventor). In 2017, Slider changed it inventory pricing method to FIFO
Slider Company began operations in 2015 and for simplicity reasons, adopted weighted-average pricing for inventor). In 2017, Slider changed it inventory pricing method to FIFO in order to be consistent with other companies in its industry. Provided below is income before income tax data related to the two inventory valuation methods: (a) Prepare comparative income statements (i.e., prepare a separate column for each of the three years) for Slider Company, beginning with income before income tax, as would be presented on their 2017 income statement. Assume a tax rate of 35%. (b) What was the cumulative effect on net income from the change in accounting principle from Weighted Average to FIFO for 2015 and 2016 (combined)? Be sure to show your computations
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