a taxpayer changed from the cash method to the accrual method. At the beginning of the year, accounts receivable totaled $250,000, accounts payable totaled $90,000, and inventory on hand totaled $320,000.\\na. What is the amount of the adjustment due to the change in accounting method?\\nb. Is the adjustment positive or negative?\\nc. If the change is voluntary, when (and in what amount) does the taxpayer recognize income/deduction?\\nd. If the change is involuntary, when (and in what amount) does the taxpayer recognize income/deduction?

a taxpayer changed from the cash method to the accrual method. At the beginning of the year, accounts receivable totaled $250,000, accounts payable totaled $90,000, and inventory on hand totaled $320,000.\\na. What is the amount of the adjustment due to the change in accounting method?\\nb. Is the adjustment positive or negative?\\nc. If the change is voluntary, when (and in what amount) does the taxpayer recognize income/deduction?\\nd. If the change is involuntary, when (and in what amount) does the taxpayer recognize income/deduction?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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