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
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
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 8E: In 2020, Frost Company, which began operations in 2018, decided to change from LIFO to FIFO because...
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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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