Question: Bronson Inc changed from the average cost formula to the
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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