mber 31, 2021, Aries Corporation appropriately changed its inventory costing method from FIFO cost to weighted average cost method for financial statement and income tax purposes. The change will result in a P700,000 decrease in the beginning inventory of January 1, 2021. Assume a 30% income tax rate. What is the amount of addition (deduction) to the January 1, 2021 balance of retained earnings?

mber 31, 2021, Aries Corporation appropriately changed its inventory costing method from FIFO cost to weighted average cost method for financial statement and income tax purposes. The change will result in a P700,000 decrease in the beginning inventory of January 1, 2021. Assume a 30% income tax rate. What is the amount of addition (deduction) to the January 1, 2021 balance of retained earnings?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...

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