Here is the problem Digit Company began operations on January 1 2015 and used the LIFO inventory method for both financial reporting and income taxes However at the beginning of 2017 Digit decided to switch to the average cost inventory method for financial and income tax reporting It had previously reported the following financial statement information for 2016 Income Statement 2016 Revenues 162560 Cost of goods sold 99060 Gross profit 63500 Operating expenses 31750 Income before taxes 31750 In

Answer rating: 100% (QA)

Step 1 of 7 A Accounting principles are the general rules and guidelines that must be followed when ... View the full answer