Question: 8) On January 1, 2021, Pluto Company changed its method of accounting for inventory from LIFO cost method to the FIFO method. This change caused

8) On January 1, 2021, Pluto Company changed its method of accounting for inventory from LIFO cost method to the FIFO method. This change caused the 2021 beginning inventory to increase by $600,000. The cumulative effect of this accounting change to be reported on the income statement for the year ended December 31, 2021, assuming a 30% tax rate, is ________

9) Cedar Company purchased equipment that cost $100,000 on January 1, 2019. The entire cost was recorded as an expense. The equipment had a ten-year life. Cedar uses the straight-line method to account for depreciation expense. The error was discovered on December 10, 2022. Cedar is subject to a 20% tax rate. What is the adjustment to retained earnings at January 1, 2022?

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