llini changed from the LIFO method of inventory costing to the FIFO method on January 1, 2022. Inventory values at the end of each year since the inception of the company on January 1, 2020 are as follows: Year FIFO LIFO 2020 $400,000 $360,000 2021 $800,000 $720,000 The effective tax rate is 20% each year. The change in inventory costing method was applied retrospectively. How would Illini's 2020 ending balance for retained earnings be affected (compared to before the accounting change)?

Answer rating: 100% (QA)

Illinis 2020 ending balance for retained earnings would be decreased by 32000 due to the accounting ... View the full answer