Description of this paper

On December 31, 2008 Kean Company changed its meth...

Description

Solution


Question

On December 31, 2008 Kean Company changed its method of accounting for inventory from weighted average cost method to the FIFO method. This change caused the 2008 beginning inventory to increase by $420,000. What is the cumulative effect of this accounting change to be reported for the year ended December 31, 2008, assuming a 40% tax rate? A. $0 B. $420,000 C. $252,000 D. $168,000

 

Paper#11361 | Written in 18-Jul-2015

Price : $25
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