Prior Corp

question 95

Multiple Choice

Prior Corp.plans to change its method of accounting for supplies.Both the old and new methods are acceptable.Which of the following statements is correct regarding the change?

• A)The taxpayer will need to amend prior returns to reflect the new method.
• B)The taxpayer will report the full amount of change in the current tax return.
• C)The taxpayer will report the net adjustment over four years.
• D)The taxpayer will report the net adjustment and pay the tax when it files the Form 3115.

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Definitions:

GABA

Gamma-aminobutyric acid, a neurotransmitter in the brain that inhibits or reduces nerve cell activity.

Seizures

Sudden, uncontrolled electrical disturbances in the brain that can cause changes in behavior, movements, feelings, and levels of consciousness.

Parkinson's Disease

A progressive neurological disorder marked by tremors, muscular rigidity, and slow, imprecise movement, mainly affecting middle-aged and elderly people.

Undersupply

A situation where the availability of a particular resource is insufficient to meet the demand for it, leading to shortages.