Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020 Net Income Stock dividends declared During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a net of tax |decrease in income Cash dividends deelared During 2020, the company discovered that the 2019 depreciation expense were overstated by a pretax amount of $900,000 88,200 14,280 11,000 21,000 10,000 Tax rate 30% Based on the data above, the changes in the accounting principles (from FIFO to LIFO) had Decreased retained earnings by $7,700 Decreased retained earnings by $3,300 Decreased retained earnings by $11,000 None of the above

Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020 Net Income Stock dividends declared During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a net of tax |decrease in income Cash dividends deelared During 2020, the company discovered that the 2019 depreciation expense were overstated by a pretax amount of $900,000 88,200 14,280 11,000 21,000 10,000 Tax rate 30% Based on the data above, the changes in the accounting principles (from FIFO to LIFO) had Decreased retained earnings by $7,700 Decreased retained earnings by $3,300 Decreased retained earnings by $11,000 None of the above

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter3: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 56P

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