Determine the amount of adjustment due to change of methods in the given situation.

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Chapter 18, Problem 8DQ

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Determine the amount of adjustment due to change of methods in the given situation.

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a taxpayer changed from the cash method to the accrual method. At the beginning of the year, accounts receivable totaled $250,000, accounts payable totaled $90,000, and inventory on hand totaled $320,000.\\na. What is the amount of the adjustment due to the change in accounting method?\\nb. Is the adjustment positive or negative?\\nc. If the change is voluntary, when (and in what amount) does the taxpayer recognize income/deduction?\\nd. If the change is involuntary, when (and in what amount) does the taxpayer recognize income/deduction?

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