Business, 07.12.2021 01:40 kiki8734

On January 1, 2021, Carla Vista Corp. changed its inventory method to FIFO from LIFO for both financial and income tax reporting purposes. The change resulted in a $990000 increase in the January 1, 2021 inventory. Assume that the income tax rate for all years is 30%. Assuming that comparative statements are not issued, the cumulative effect of the accounting change should be reported by Carla Vista in its 2021: a. income statement as a $650,000 cumulative effect of accounting change
b. income statement as a $520,000 cumulative effect of accounting change
c. retained earnings statement as of $650,000 addition to the beginning balance
d. retained earnings statement as of $520,000 addition to the beginning balance

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On January 1, 2021, Carla Vista Corp. changed its inventory method to FIFO from LIFO for both financ...

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