Shannon, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2014.
Question:
Shannon, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2014. The increase in the prior year’s income before taxes is $1,200,000. The tax rate is 40%. Prepare Shannon’s 2014 journal entry to record the change in accounting principle.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (4 reviews)
To record the change in accounting principle from LIFO to FIFO you would nee...View the full answer
Answered By
Ernie Moises Evora
I have worked as a teacher, a tutor and instructor.
I have also worked as a community leader in my community.
0.00
0 Reviews
10+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Question Posted:
Students also viewed these Business questions
-
Shannon, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2010. The increase in the prior years income before taxes is $1,200,000. The tax rate is 40%. Prepare...
-
Shannon, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2020. The increase in the prior years income before taxes is $1,200,000. The tax rate is 20%. Prepare...
-
Shannon, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2012. The increase in the prior years income before taxes is $1,200,000. The tax rate is 40%. Prepare...
-
Abbie Young is the manager of the customer-service division of an electrical appliance store. Abbie is considering buying a machine at a cost of $10,000 on December 31, 2019. The machine will last...
-
Visit the website for the Malcolm Baldrige National Quality Award (MBNQA) at www.quality.nist.gov, and answer the following questions: a. How did the MBNQA come into existence? b. Why would...
-
Compute the norms (5), (6), (7). Compute a corresponding unit vector (vector of norm 1) with respect to the l -norm. [1 -3 8 0 -6 0]
-
Consider the IRR and ERR measures of worth. If we define a root to mean a value for the measure that results in \(\mathrm{PW}=0\), then which of the following statements is true? a. Both IRR and ERR...
-
Vandells free cash flow (FCF0) is $2 million per year and is expected to grow at a constant rate of 5 percent a year; its beta is 1.4. What is the value of Vandells operations? If Vandell has $10.82...
-
Seri Minyak Bhd uses crude palm oil in producing its products. The company expected to use 200 tonnes of crude palm oil in July 2023 to meet the demand in the festival season. If the price of raw...
-
Michael Jensen developed some of the seminal ideas underlying agency theory. He suggests that at the time the market value of Enron peaked at approximately $70 billion, its intrinsic value was...
-
Helicopteros Sanitarios, an ambulance service in Fuengirola, Spain, receives an average of 20 calls per day during the time period 6 p.m. to 6 a.m. for assistance. For any given day what is the...
-
Sesame Company purchased a computer system for $74,000 on January 1, 2013. It was depreciated based on a 7-year life and an $18,000 salvage value. On January 1, 2015, Sesame revised these estimates...
-
In the study discussed in the previous three exercises, this completely randomized study actually used two factors: whether received aspirin or placebo and whether received betacarotene or placebo....
-
Professor Pacioli was recently asked the following five questions by his aspiring accounting students. Prepare a summary of the professor's reply to each question. (a) Professor, I cannot quite put...
-
With your professor's help, liaison with a team from either a systems analysis or computer programming class at another school. Your assignment, to complete together, is to build a suitable Web page...
-
Use the information in the preceding question to create a prototype of the report; use an automated tool such as Microsoft Access (or if you prefer, you can create a prototype the old-fashioned way...
-
Meet with the person you interviewed in mini case 1 and present them with the design prototype you created. Get their feedback on the design. Do they like it? Could they navigate the pages? What...
-
In 2007, Italy announced that an Italian journalist, Daniel Mastrogiacomo, who had been held hostage for 15 days by the Taliban in Afghanistan, had been ransomed for 5 Taliban prisoners. Governments...
-
A small industrial printer costs $50000 and is expected to earn annual net cash inflows of $22000, $20000, $18 000 and $16 000, before it wears out sufficiently to be unreliable and must be sold for...
-
Global.asax is used for: a. declare application variables O b. all other answers are wrong O c. declare global variables O d. handle application events
-
On June 4, Seller Company signed a sales agreement with Buyer Company to deliver and install a piece of factory equipment. The total contract price is $300,000. Customers usually buy an...
-
The company signed an $800,000 contract to build an environmentally friendly access trail to South Willow Lake. The project was expected to take approximately three years. The following information...
-
Refer to Practice 8-10. Assume that the company employs the efforts-expended method of estimating the percentage of completion. In particular, the company measures its progress by the number of...
-
On May 7, Bergan Company purchased on account 60,500 units of raw materials at $13.00 per unit. During May, raw materials were requisitioned for production as follows: 26,600 units for Job 200 at...
-
Spotted Cow Dairy Company manufactures three productswhole milk, skim milk, and creamin two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is $299,700. The...
-
Karim Corp. requires a minimum $9,600 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash...
Study smarter with the SolutionInn App