Question: Armstrong Ltd. has used the average cost (AC) method to determine inventory values since the company was first formed in 203. In 20X7, the company

Armstrong Ltd. has used the average cost (AC) method to determine inventory values since the company was first formed in 203. In 20X7,

Armstrong Ltd. has used the average cost (AC) method to determine inventory values since the company was first formed in 203. In 20X7, the company decided to switch to the FIFO method, to conform to industry practice. Armstrong will still use average cost for tax purposes. The tax rate is 20%. The following data have been assembled: *Using the old policy, average cost Using the new policy, FIFO. Required: Prepare the comparative retained earnings section of the statement of changes in shareholders' equity for 207, reflecting the change in accounting policy

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