Jack's Fireworks, which was established in 2000, changed its method of accounting for inventories from the average cost method to the first in, first out (FIFO) method in 2011 Cost of goods sold for the periods 2009 2011 under FIFO and the average cost method were year FIFO AVERAGE COST DIFFERENCE 2009 $120,000 $110,000 $10,000 2010 140,000 128,000 12,000 2011 150,000 144,000 6,000 Jack's Fireworks is subjects to a 30 income tax rate In its income statement for the year ended December 31, 2011, Jack's would report the cululative effect of a change in accounting principle, net of income taxes of a $0, b $(4,2000) c, $(15,400)

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Question: Jack's Fireworks, which was established in 2000, changed its method of accounting for inventories from the average cost method to the first-in, first-out (FIFO) method

Jack's Fireworks, which was established in 2000, changed its method of accounting for inventories from the average cost method to the first-in, first-out (FIFO) method in 2011. Cost of goods sold for the periods 2009-2011 under FIFO and the average cost method were

year	FIFO	AVERAGE COST	DIFFERENCE
2009	$120,000	$110,000	$10,000
2010	140,000	128,000	12,000
2011	150,000	144,000	6,000

Jack's Fireworks is subjects to a 30% income tax rate. In its income statement for the year ended December 31, 2011, Jack's would report the cululative effect of a change in accounting principle, net of income taxes of a. $0, b. $(4,2000) c, $(15,400)

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