Draft a footnote to disclose the accounting change implemented by the Mills Abrams Manufacturing Company using the
Question:
In BE21-2.
Mills Abrams Manufacturing Company changed its method of accounting for inventory from the average- cost method to the LIFO basis as of the beginning of the current year. It still uses the average-cost method for tax purposes. The company is subject to a 40% tax rate. Cumulative cost of goods sold reported prior to the current year is $ 140,000 under the average- cost method and it would have been $ 300,000 if Mills had always used the LIFO method. Prepare the journal entry to record the change in method. .
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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