During 2022, ABC Company decided to change from FlIFO method of inventory valuation to theweighted average method. Inventory balances under each method were as follows:Weighted Average MethodFIFO MethodJanuary 11,630.0001,490,000December 31 1.960,0001,680,000Income tax rate is 30%. In its 2014 statement of changes in equity, what amount should ABC report asthe effect of this accounting change? (indicate negative sign if decrease in equity)

There are various methods of Inventory Valuation namely: FIFO, LIFO, Weighted Average, etc. Each…

Juring 2022, ABC Company decided to change from FIFO method of inventory valuation to the veighted average method. Inventory balances under each method were as follows: Weighted Average Method FIFO Method lanuary 1 1,630.000 1,490,000 December 31 1.960,000 1,680,000 Income tax rate is 30%. In its 2014 statement of changes in equity, what amount should ABC report a the effect of this accounting change? (indicate negative sign if decrease in equity)

Juring 2022, ABC Company decided to change from FIFO method of inventory valuation to the veighted average method. Inventory balances under each method were as follows: Weighted Average Method FIFO Method lanuary 1 1,630.000 1,490,000 December 31 1.960,000 1,680,000 Income tax rate is 30%. In its 2014 statement of changes in equity, what amount should ABC report a the effect of this accounting change? (indicate negative sign if decrease in equity)

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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