During 2022, ABC Company decided to change from FlIFO method of inventory valuation to theweighted average method. Inventory balances under each method were as follows:Weighted Average MethodFIFO MethodJanuary 11,630.0001,490,000December 31 1.960,0001,680,000Income tax rate is 30%. In its 2014 statement of changes in equity, what amount should ABC report asthe effect of this accounting change? (indicate negative sign if decrease in equity)

There are various methods of Inventory Valuation namely: FIFO, LIFO, Weighted Average, etc. Each…

Juring 2022, ABC Company decided to change from FIFO method of inventory valuation to the veighted average method. Inventory balances under each method were as follows: Weighted Average Method FIFO Method lanuary 1 1,630.000 1,490,000 December 31 1.960,000 1,680,000 Income tax rate is 30%. In its 2014 statement of changes in equity, what amount should ABC report a the effect of this accounting change? (indicate negative sign if decrease in equity)

Juring 2022, ABC Company decided to change from FIFO method of inventory valuation to the veighted average method. Inventory balances under each method were as follows: Weighted Average Method FIFO Method lanuary 1 1,630.000 1,490,000 December 31 1.960,000 1,680,000 Income tax rate is 30%. In its 2014 statement of changes in equity, what amount should ABC report a the effect of this accounting change? (indicate negative sign if decrease in equity)

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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