Find the cumulative effect of accounting change

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Reference no: EM1373920

On December 31, 2013, Gifts Galore, Inc. suitably changed its inventory valuation method from weighted-average cost to FIFO method for income tax purposes and financial statement. The change will result in a $1,800,000 increase in the start inventory at January 1, 2013. Consider a 40% income tax rate. Find the cumulative effect of this accounting change on beginning retained earnings

Reference no: EM1373920

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