Question: Jacob, Inc., changed from the average cost to the FIFO cost flow assumption in 2019. The increase in the prior year's income before taxes is

Jacob, Inc., changed from the average cost to the FIFO cost flow assumption in 2019. The increase in the prior year's income before taxes is 1,100,000. The tax rate is 35%. Jacob's 2019 journal entry to record the change in accounting policy will include. a. a debit to Retained Earnings for 1,100,000. b. a credit to Retained Earnings for 1,100,000. a debit to Inventory for 715,000. C. a credit to Deferred Tax Liability for 385,000

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