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During year 3, Orca Corp, decided to change from the FIFO method of Inventory valuation to the weighted balances under each method were as follows: January 1, year 3 FIFO Weighted average $71,000 December 31, year 3 $79,000 $77,000 $83,000 Orca's income tax rate is 30%. In its year 3 financial statements, what amount should Orca report as the gain or loss on the cumulative effect of this accounting

During year 3, Orca Corp, decided to change from the FIFO method of Inventory valuation to the weighted balances under each method were as follows: January 1, year 3 FIFO Weighted average $71,000 December 31, year 3 $79,000 $77,000 $83,000 Orca's income tax rate is 30%. In its year 3 financial statements, what amount should Orca report as the gain or loss on the cumulative effect of this accounting

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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During year 3, Orca Corp. decided to change from the FIFO method of inventory valuation to the weighted-average method. Inventory balances under each method were as follows: January 1, year 3 December 31, year 3 FIFO O $4,200 $0 $2,800 $4,000 $71,000 $79,000 Weighted-average $77,000 $83,000 Orca's income tax rate is 30%. In its year 3 financial statements, what amount should Orca report as the gain or loss on the cumulative effect of this accounting change?
Transcribed Image Text:During year 3, Orca Corp. decided to change from the FIFO method of inventory valuation to the weighted-average method. Inventory balances under each method were as follows: January 1, year 3 December 31, year 3 FIFO O $4,200 $0 $2,800 $4,000 $71,000 $79,000 Weighted-average $77,000 $83,000 Orca's income tax rate is 30%. In its year 3 financial statements, what amount should Orca report as the gain or loss on the cumulative effect of this accounting change?
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