Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020 $900,000 Net Income 88,200 Stock dividends declared 14,280 During the from FIFO to LIFO which had resulted in a net of tax year, the company changed its inventory method 11,000 decrease in income Cash dividends declared 21,000 During 2020, the company discovered that the 2019 depreciation expense were overstated by a pretax amount of 10,000 Tax rate 30%

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Use the following to answer the four questions below:
Presented below is X Corporation's selected data for 2020:
Retained Eamings, January 1, 2020
$900,000
Net Income
88,200
Stock dividends declared
14,280
During the
from FIFO to LIFO which had resulted in a net of tax
year,
the
company changed its inventory method
11,000
decrease in income
Cash dividends declared
21,000
During 2020, the company discovered that the 2019
depreciation expense were overstated by a pretax amount of
10,000
Tax rate
30%
Based on the data above, the changes in the accounting principles (from FIFO to
LIFO) had
Transcribed Image Text:Use the following to answer the four questions below: Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020 $900,000 Net Income 88,200 Stock dividends declared 14,280 During the from FIFO to LIFO which had resulted in a net of tax year, the company changed its inventory method 11,000 decrease in income Cash dividends declared 21,000 During 2020, the company discovered that the 2019 depreciation expense were overstated by a pretax amount of 10,000 Tax rate 30% Based on the data above, the changes in the accounting principles (from FIFO to LIFO) had
None of the above
Based on the data above, the prior period adjustment (related to the 2019
depreciation expense) had ---------*
O Increased retained earnings by $7,000
O Decreased retained earnings by $7,000
O Increased retained earnings by $10,000
O None of the above
Based on the data above, Retained Earnings as restated on January 1, 2020 w
*-
Transcribed Image Text:None of the above Based on the data above, the prior period adjustment (related to the 2019 depreciation expense) had ---------* O Increased retained earnings by $7,000 O Decreased retained earnings by $7,000 O Increased retained earnings by $10,000 O None of the above Based on the data above, Retained Earnings as restated on January 1, 2020 w *-
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