What amount should moore report as the cumulative


Moore Company began operations on Jan. 1st year 1. At the beginning of year 3 Moore switched from LIFO to FIFO for both financial and tax purposes. If FIFO had been used in prior years Moore%u2019s inventories would have been higher by $60,000 and $40,000 at the end of the year for years 3 and 2, respectively. Moore has a 30% income tax rate. What amount should Moore report as the cumulative effect of this accounting change in the income statement for the year ended December 31st of year 3?

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Accounting Basics: What amount should moore report as the cumulative
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