Refer to the accounting change by Beaty Construction Company in BE18-1. Beaty has a profit-sharing plan, which
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Refer to the accounting change by Beaty Construction Company in BE18-1. Beaty has a profit-sharing plan, which pays all employees a bonus at year-end based on 1% of pre-tax income. Compute the indirect effect of Beaty’s change in accounting principle that will be reported in the 2008 income statement, assuming that the profit-sharing contract explicitly requires adjustment for changes in income numbers.
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Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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