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Weaver Company changes from the LIFO method to the FIFO method in 2021. The increase in pre-tax income as a result of the difference in
Weaver Company changes from the LIFO method to the FIFO method in 2021. The increase in pre-tax income as a result of the difference in the two methods prior to 2019 is $ 100,000 and for the year 2019 is $40,000 and for the year 2020 is $30,000. The estimated tax effect is 40%. The entry to record the change at the beginning of 2020 should include. a credit to deferred tax liability of $65,000 a credit to deferred tax liability of $56,000 a credit to deferred tax liability of $68,000 a dobit to deferred tax liability of $68,000
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