Strong Corporation had consistently used the cash method of accounting even though inventories were a material income-producing factor to its business and average annual gross receipts in the prior three-year period exceeded $25 million. Strong decided to voluntarily change to the accrual method of accounting. The adjustment to income due to the change was that the correct beginning balances for the year of the change are as follows: $600,000 for inventories, $300,000 for accounts receivable, and $120,000 for accounts payable. What is the IRC Section 481 adjustment due to the change in accounting method?

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Answer The IRC Section 481 adjustment due to the change in accounting method from the cash method to ... View the full answer