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On December 31, 2013, Gifts Galore, Inc. appropriately changed its inventory valuation method from weighted-average cost to FIFO method for financial statement and income tax purposes. The change will result in a $1,800,000 increase in the beginning inventory at January 1, 2013. Assume a 40% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is
• $0.• $1,800,000.• $1,080,000.• $720,000.
Assess the supremacy provision in the Federal constitution. Discuss how the passage of a state tax bill is similar to the passage of a Federal law.
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Explain the problem with authority and resoning
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