Cumulative effect of accounting change problem, Accounting Basics

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Cumulative effect of accounting change problem

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. The cumulative effect of this accounting change to be reported for the year ended 12/31/08, assuming a 40% tax rate, is

A. $420,000.

B. $252,000.

C. $168,000.

D. $0.

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Accounting Basics: Cumulative effect of accounting change problem

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Accounting Basics: Cumulative effect of accounting change problem

Reference No:- TGS076797

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Recent Questions Asked Accounting Basics

Q : Formal training in finance or accounting

Q : Analysis of alternatives

Q : Required year-end maintenance

Q : How are amounts of adjustment determined

Q : Cumulative effect of accounting change problem

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Accounting Basics: Cumulative effect of accounting change problem

Reference No:- TGS076797

Recent Questions Asked Accounting Basics

Q : Formal training in finance or accounting

Q : Analysis of alternatives

Q : Required year-end maintenance

Q : How are amounts of adjustment determined

Q : Cumulative effect of accounting change problem

Q : What is the budgeted cash balance

Q : Compute the book value of vega

Q : Financial statements in your fedex annual report

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