Business, 20.03.2020 01:49 dannmend123
At December 31, 2004, Off‐Line Co. changes its method of accounting for demo costs from writing off the costs over two years to expensing the costs immediately. Off‐Line makes the change in recognition of an increasing number of demos placed with customers that did not result in sales. Off‐Line has deferred demo costs of $500,000 at December 31, 2003, $300,000 of which were to be written off in 2004 and the remainder in 2005. Off‐Line's income tax rate is 30%. In its 2004 retained‐earnings statement, what amount should Off‐Line report as cumulative effect of change in accounting principle?
Answers: 1
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At December 31, 2004, Off‐Line Co. changes its method of accounting for demo costs from writing off...