On January 1, 2011, Folk Company changed from the average cost method to the FIFO method to account for its inventory. Ending inventory for each method was given below. Folk Company accrues tax expense on December 31 of each year and pays the tax in April of the following year. The income tax rate is 30%. What is the net income to be reported in 2011 after the change to the FIFO inventory method? a. 1,610,000 b. 2,300,000 c. 1,750,000 d. 1,890,000

A4

Requirements: What is the entry to record the effect of this accounting change? cumulative effect of this accounting change = 98,000

On December 31, 20x2, Grayson Inc. changed its inventory valuation method to FIFO from weighted-average. The change will result in an $800,000 increase in the beginning inventory at January 1, 20x2. Assume a 30% income tax rate. The cumulative effect of this accounting change on prior periods that will be reported as an adjustment to the beginning balance of retained earnings is O $560,000 O $800,000 0$-0- O $40,000

Sagar

Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,650 in child care expenses so that she would be able to work. Of this amount, $780 was paid to Adrienne’s mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $2,200 from her jewelry business. In addition, she received child support payments of $21,400 from her ex-husband. Use Child and Dependent Care Credit AGI schedule. Required: What amount, if any, of child and dependent care credit can Adrienne claim?

Massi pharmacies, Inc. started operations on January 1 2X11. The company used the average cost method t=o value inventory. Effective January 1 2X15, Massi elected to change its inventory method to the FIFO basis for reporting purposes. The following information is available for net income for average cost and for FIFO,   Year ended Net Income  Using Average cost Net Income Using FIFO After Tax   Difference  After Tax Cumulative Effect December 31, 2X11 $235,000 $310,000 $75,000 $75,000 December 31, 2X12 $300,000 $376,000 $76,000 $151,000 December 31, 2X13 $310,000 $400,500 $90,500 $241,000 December 31, 2X14 $425,000 $535,000 $109,500 $351,000 December 31, 2X15 $500,000 $585,000 $85,000

Spando Apparel uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report: Inventories ($ in millions): Total inventories LIFO reserve 2024 $ 679 (119) $ 560 2023 $ 658 (69) $ 589 The company's income statement reported cost of goods sold of $3,300 million for the fiscal year ended December 31, 2024. Required: 1. Spando adjusts the LIFO reserve at the end of its fiscal year. Prepare the December 31, 2024, adjusting entry to record the cost of goods sold adjustment. 2. If Spando had used FIFO to value its inventories, what would cost of goods sold have been for the 2024 fiscal year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Spando adjusts the LIFO reserve at the end of its fiscal year. Prepare the December 31, 2024, adjusting entry to record th goods sold adjustment. Note: Enter your answers in millions.…

Cheyenne Corp. had the following inventory transactions occur during 2022:         Units   Cost/unit Feb. 1, 2022   Purchase   95   $40 Mar. 14, 2022   Purchase   164   $41 May 1, 2022   Purchase   116   $43 The company sold 269 units at $55 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $1584, what is the company’s after-tax income using LIFO?   $1950.00 $1579.90 $2257.00 $1365.0

3.  How much is the cumulative effect of this change that should be reported in the income statement for the year ended December 31, 2021?