Amazon.com, Inc., the online retail shopping and video subscription company, reported a change in an accounting estimate
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Amazon.com, Inc., the online retail shopping and video subscription company, reported a change in an accounting estimate in the first quarter of 2020. Use the following information and excerpts from its financial statements to analyze the change and its effect on the financial statements.
a. What accounting change did Amazon make?
b. What reason(s) does Amazon give for making this change?
c. What method did Amazon use to account for this change?
d. What would Amazon’s net income and diluted earnings per share have been in the first quarter of 2020 if it did not make the change? Comment on the difference.
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Related Book For
Intermediate Accounting
ISBN: 9780136946694
3rd Edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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