Cumulative effect of the accounting change

Assignment Help Accounting Basics

Reference no: EM13762618

On January 1, 2013, Playtime Corporation changed its inventory method to FIFO from LIFO for both financial and income tax reporting purposes. The change resulted in a $900,000 increase in the January 1, 2013 inventory. Assume that the income tax rate for all years is 30%. The cumulative effect of the accounting change should be reported by Playtime in its 2013

retained earnings statement as a $630,000 addition to the beginning balance.
income statement as a $630,000 cumulative effect of accounting change.
retained earnings statement as a $630,000 addition to the beginning balance.
income statement as a $630,000 cumulative effect of accounting change.

Reference no: EM13762618

Questions Cloud

State and federal elections : Opinion polls attempt to predict the results of local, state and federal elections. Discuss six reasons why the results of the opinion poll and the outcome of the election may differ.

Organization and management analysis : Describe various organizational theories.

Evaluation strategy : You have successfully developed a new financial accounting system in your organization. You have completed the development of the user documentation and training plan.

How would enter a specific global market : Identify a non-global company and select a market entry strategy.

Cumulative effect of the accounting change : Assume that the income tax rate for all years is 30%. The cumulative effect of the accounting change should be reported by Playtime in its 2013

Write a program that reads a file and builds a linked list : Write a program that reads a file and builds a linked list. After the list is built display it on monitor. You may use any appropriate data structure, but it should have a key field and data. Two possibilities are a list of your favourite CD's or ..

Discuss vendetta in the play blood wedding : Give a character sketch of each major character and discuss their intertwined relationships. Discuss vendetta in the play Blood Wedding. Who has a vendetta? What is the result?

Earnings per share of common stock : Parson Corporation had 500,000 shares of common stock outstanding on January 1, issued 100,000 shares on October 1, and had income applicable to common stock of $730,000 for the year ended December 31, 2013. Rounded to the nearest penny, earnings ..

E training evaluation : Now that the users have been trained on the new financial accounting system in your organization and the helpdesk has begun to support the system, you would like to perform a post-implementation review to ensure that the system is meeting the obje..

User Account

All Pages