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1. Accounting Change Linden Company started operations on January 1, 2006, and has used the FIFO method of inventory valuation since its inception. In 2012, it decides to switch to the average cost method. You are provided with the following information.
(a) What is the beginning retained earnings balance at January 1, 2008, if Linden prepares comparative financial statements starting in 2008?
(b) What is the beginning retained earnings balance at January 1, 2011, if Linden prepares comparative financial statements starting in 2011?
(c) What is the beginning retained earnings balance at January 1, 2012, if Linden prepares single period financial statements for 2012?
(d) What is the net income reported by Linden in the 2011 income statement if it prepares comparative financial statements starting with 2009?
The normal profit margin is 30% of selling price. What unit value should Ross use when applying the LCM rule to ending inventory?
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Madison's gross tax liability is $9,000. Madison had $3,000 of tax credits available and she had $8,000 of taxes withheld by her employer. What is Madison's taxes due (or taxes refunded) with her tax return?
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