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Business, 20.03.2020 01:49 dannmend123
At December 31, 2004, OffâLine Co. changes its method of accounting for demo costs from writing off the costs over two years to expensing the costs immediately. OffâLine makes the change in recognition of an increasing number of demos placed with customers that did not result in sales. OffâLine has deferred demo costs of $500,000 at December 31, 2003, $300,000 of which were to be written off in 2004 and the remainder in 2005. OffâLine's income tax rate is 30%. In its 2004 retainedâearnings statement, what amount should OffâLine report as cumulative effect of change in accounting principle?
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At December 31, 2004, OffâLine Co. changes its method of accounting for demo costs from writing off...
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