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Which of the following describes a change in reporting entity? A company changes the companies included in combined financial statements. A company divests itself of
Which of the following describes a change in reporting entity? A company changes the companies included in combined financial statements. A company divests itself of a European branch sales office. A company acquires 10% of the outstanding stock of a supplier. A manufacturing company expands its market from regional to nationwide. On December 31, 2017, Dodd, Inc. appropriately changed its inventory valuation method to FIFO cost from weighted-average cost for financial statement purposes. The change will result in an increase in the Inventory account at January 1, 2017. The amount of the change, net of tax is, $2,300,000 (all tax effects should be ignored). The cumulative effect of this accounting change should be reported by Dodd, Inc, in 2017: retained earnings statement as a $2,300,000 addition to the ending balance. retained earnings statement as a $2,300,000 addition to the beginning balance. income statement as a $2,300,000 cumulative effect of accounting change. retained earnings statement as a $2,300,000 deduction from the beginning balance
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