Question

Bronson, Inc. changed from the average cost formula to the FIFO cost formula in 2011. The increase in the prior year’s income before taxes as a result of this change is $435,000. The tax rate is 35%. Prepare Bronson’s 2011 journal entry to record the change in accounting principle, assuming that the company’s financial statements were determined to have better predictive value as a result of the change.


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  • CreatedAugust 23, 2015
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