John Pickens writes mystery novels. His publisher pays him royalties for the number of books sold each year. He is paid royalties for the first half of the year on September 30 and the second half of the year on March 31 of the following year. He received $42,000 in September, 2022. The publisher estimated that his royalties for the second half of the year would be $53,000. On March 31, 2023, he received $57,500. Assuming that he recorded $53,000 in royalties at December 31, 2022, how would you account for this change? Group of answer choices as a change in accounting principle as a prior period error correction as an error as a change in estimate

John Pickens writes mystery novels. His publisher pays him royalties for the number of books sold each year. He is paid royalties for the first half of the year on September 30 and the second half of the year on March 31 of the following year. He received $42,000 in September, 2022. The publisher estimated that his royalties for the second half of the year would be $53,000. On March 31, 2023, he received $57,500. Assuming that he recorded $53,000 in royalties at December 31, 2022, how would you account for this change? Group of answer choices as a change in accounting principle as a prior period error correction as an error as a change in estimate

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 41P

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