What is the cumulative effect of this accounting change


On December 31, 2008, Ellworth, Inc. appropriately changed its inventory valuation method to FIFO cost from weighted-average cost for financial statement and income tax purposes. The change will result in a $1,500,000 increase in the beginning inventory at January 1, 2008. Assume a 30% income tax rate. what is the cumulative effect of this accounting change on beginning retained earnings ?

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Accounting Basics: What is the cumulative effect of this accounting change
Reference No:- TGS074968

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