Business, 25.04.2020 01:09 Mattorth512345
Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2018 decided to change to the FIFO method. The inventory as reported at the end of 2017 using LIFO would have been $20 million higher using FIFO. Retained earnings reported at the end of 2016 and 2017 was $240 million and $260 million, respectively (reflecting the LIFO method). Those amounts reflecting the FIFO method would have been $250 million and $272 million, respectively. 2017 net income reported at the end of 2017 was $28 million (LIFO method) but would have been $30 million using FIFO. After changing to FIFO, 2018 net income was $36 million. Dividends of $8 million were paid each year. The tax rate is 40%.
Required:
1. Prepare the journal entry at the beginning of 2018 to record the change in accounting principle.
2. In the 2018-2017 comparative income statements, what will be the amounts of net income reported for 2017 and 2018?
3. Prepare the 2018-2017 retained earnings column of the comparative statements of shareholders' equity.
Answers: 3
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In the fall of 2008, aig, the largest insurance company in the world at the time, was at risk of defaulting due to the severity of the global financial crisis. as a result, the u.s. government stepped in to support aig with large capital injections and an ownership stake. how would this affect, if at all, the yield and risk premium on aig corporate debt?
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An economic theory that calls for workers to take control of factories is .
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Answers: 3
Business, 23.06.2019 01:10
Atariff on avocadoes the price of avocadoes, consumers' surplus for avocado buyers, producers' surplus of avocado growers and tariff revenue. because the loss to is more than the gain to there is a net loss to society.raises; decreases; increases; generates; consumers; producers and government raises; increases; decreases; does not generate; producers and government; consumers lowers; increases; decreases; does not generate; producers and government; consumers raises; increases; decreases; generates; producers; consumers and government
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Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2018 decid...
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