On January 1, 2018, Frost Corp. changed its inventory method to FIFO from LIFO, for both financial
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Question:
On January 1, 2018, Frost Corp. changed its inventory method to FIFO from LIFO, for both financial and income tax reporting purposes. The change resulted in a $900,000 increase in the January 1, 2018 inventory. Assume that the income tax rate for all years is 30%. The cumulative effect of the accounting change should be reported by Frost in its 2018 ________.
retained earnings statement, as a $630,000 addition to the beginning balance |
income statement, as a $630,000 cumulative effect of accounting change |
retained earnings statement, as a $900,000 addition to the beginning balance |
income statement, as a $900,000 cumulative effect of accounting change |
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
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