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:

Political Instability

The likelihood of significant change in the governing framework of a country, which can include shifts in government, policy upheavals, or civil unrest.

Demographic Transition

The shift from high to low birth and death rates as a nation moves from a pre-industrial to an industrial economic system during its development.

National Incomes

The total earnings from production and services by residents of a country, within a specific time period, including wages, profits, and taxes less subsidies.

Low-Income DVCs

Developing countries with low levels of income per capita, often characterized by economic vulnerabilities.