Shannon, Inc. changed from the average cost to the FIFO cost flow assumption in 2010. The increase

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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.


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Intermediate Accounting

ISBN: 978-0470616314

IFRS edition volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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