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)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During 2022, ABC Company decided to change from FlIFO method of inventory valuation to the
weighted average method. Inventory balances under each method were as follows:
Weighted Average Method
FIFO Method
January 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 as
the effect of this accounting change? (indicate negative sign if decrease in equity)
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