On December 31, 2024, Sheridan Company changed its method of accounting for inventory from the average-cost method to the FIFO method. This change caused the 2024 beginning inventory to increase by $985000. The cumulative effect of this accounting change to be reported for the year ended 12/31/24, assuming a 20% tax rate, is O $788000. O $197000. $0. O $985000.
On December 31, 2024, Sheridan Company changed its method of accounting for inventory from the average-cost method to the FIFO method. This change caused the 2024 beginning inventory to increase by $985000. The cumulative effect of this accounting change to be reported for the year ended 12/31/24, assuming a 20% tax rate, is O $788000. O $197000. $0. O $985000.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:On December 31, 2024, Sheridan Company changed its method of accounting for inventory from the average-cost method to the FIFO
method. This change caused the 2024 beginning inventory to increase by $985000. The cumulative effect of this accounting change to
be reported for the year ended 12/31/24, assuming a 20% tax rate, is
O $788000.
O $197000.
O $0.
O $985000.
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