Bronson, Inc. changed from the average cost formula to the FIFO cost formula in 2011. The increase

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Bronson, Inc. changed from the average cost formula to the FIFO cost formula in 2011. The increase in the prior year’s income before taxes as a result of this change is $435,000. The tax rate is 35%. Prepare Bronson’s 2011 journal entry to record the change in accounting principle, assuming that the company’s financial statements were determined to have better predictive value as a result of the change.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-0470161012

9th Canadian Edition, Volume 2

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

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