Presented below is X Corporation's selected data for 2020: Retained earnings January 1 ,2020 $6,000,000 2,000,000 Pretax Income Stock dividends declared During the year, the company changed its inventory method from FIFO to LIF0 which had resulted in a pretax increase in income by: Cash dividends declared During 2020. the company discovered that the 2019 depreci ation expense were overstated by a net of tax amount of: 330,000 40,000 225,000 70.000 Tax rate 30% Based on the data above. the changes in the accounting principles (from FIFO t LIFO) had O Decreased retained earnings by $40.000 O Increased retained earnings by $40000 O Increased retained earnings by $28,000 O None of the above

Presented below is X Corporation's selected data for 2020: Retained earnings January 1 ,2020 $6,000,000 2,000,000 Pretax Income Stock dividends declared During the year, the company changed its inventory method from FIFO to LIF0 which had resulted in a pretax increase in income by: Cash dividends declared During 2020. the company discovered that the 2019 depreci ation expense were overstated by a net of tax amount of: 330,000 40,000 225,000 70.000 Tax rate 30% Based on the data above. the changes in the accounting principles (from FIFO t LIFO) had O Decreased retained earnings by $40.000 O Increased retained earnings by $40000 O Increased retained earnings by $28,000 O None of the above

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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