Shannon, Inc. changed from the average cost to the FIFO cost flow assumption in 2010. The increase in the prior year’s income before taxes is 1,200,000. The tax rate is 40%. Prepare Shannon’s 2010 journal entry to record the change in accounting policy.
Answer to relevant QuestionsAt January 1, 2010, Cheng Company reported retained earnings of ¥20,000,000. In 2010, Cheng discovered that 2009 depreciation expense was understated by ¥4,000,000. In 2010, net income was ¥9,000,000 and dividends ...Yoon Co. purchased a machine on January 1, 2007, for 44,000,000. At that time, it was estimated that the machine would have a 10-year life and no residual value. On December 31, 2010, the firm’s accountant found that the ...As a public accountant, you have been contacted by Joe Davison, CEO of Sports-Pro Athletics, Inc., a manufacturer of a variety of athletic equipment. He has asked you how to account for the following changes.1. Sports-Pro ...Briefly describe some of the similarities and differences between disclosure rules under U.S. GAAP and IFRS.An annual report of Barclays Company states, “Net income a share is computed based upon the average number of shares of all classes outstanding. Additional shares of ordinary shares may be issued or delivered in the future ...
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