What is Crane's net income in 20227 Assume a 35% tax rate in all years.

Net Income $200020.

Compute the cumulative effect to retained earnings for 2022 of the change in accounting principle from weighted average to FIFO inventory pricing

Net Effect    $               .

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Crane Company began operations in 2020 and adopted weighted-average pricing for inventory. In 2022, in accordance with other companies in its industry, Crane changed its inventory pricing to FIFO. The pretax income data is reported below. Year Weighted-Average FIFO 2020 $387.100 $402.400 2021 392,500 422.000 2022 430,800 463,500 Crane Company began operations in 2020 and adopted weighted-average pricing for inventory. In 2022, in accordance with other companies in its industry, Crane changed its inventory pricing to FIFO. The pretax income data is reported below. Year Weighted-Average FIFO 2020 $387.100 $402.400 2021 392,500 422.000 2022 430,800 463,500

Answer rating: 100% (QA)

Answer Explanation 01 Net Income bretak 463500 x 35 tax tax 162225 Net ... View the full answer