What is the cumulative effect of this accounting change


On December 31, 2013, Bob's Trucking, Inc. appropriately changed its inventory valuation method from weighted-average cost to FIFO method for financial statement and income tax purposes. The change will result in an $800,000 increase in the beginning inventory at January 1, 2013. Assume a 40% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is __ ?

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Accounting Basics: What is the cumulative effect of this accounting change
Reference No:- TGS042672

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