Click here to order similar paper @Essaybay.net. 100% Original.Written from scratch by professional writers.
On January 1, 2013, Playtime Corporation changed its inventory method to FIFO from LIFO for both financial and income tax reporting purposes. The change resulted in a $900,000 increase in the January 1, 2013 inventory. Assume that the income tax rate for all years is 30%. The cumulative effect of the accounting change should be reported by Playtime in its 2013
|
retained earnings statement as a $630,000 addition to the beginning balance.
|
||
|
income statement as a $630,000 cumulative effect of accounting change.
|
||
|
retained earnings statement as a $630,000 addition to the beginning balance.
|
||
|
income statement as a $630,000 cumulative effect of accounting change.
|