On January 1, 2020, Miner Corp

question 47

Multiple Choice

On January 1, 2020, Miner Corp. changed its inventory costing from FIFO to average cost for financial statement and income tax purposes, to make their reporting as reliable and more relevant. The change resulted in a $ 600,000 increase in the beginning inventory at January 1, 2020. Assume a 30% income tax rate. The cumulative effect of this accounting change should be reported by Chickadee in its 2020

• A) Retained earnings statement as a $ 420,000 addition to the beginning balance.
• B) Income statement as $ 420,000 other comprehensive income.
• C) Retained earnings statement as a $ 600,000 addition to the beginning balance.
• D) Income statement as a $ 600,000 cumulative effect of accounting change.

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Definitions:

Hedonism

A philosophy or lifestyle centered around the pursuit of pleasure and avoidance of pain as the highest good.

Pakistani Culture

A rich and diverse cultural background of Pakistan, encompassing traditions, languages, food, and religious practices that define the country's identity.

Tradition

The passing down of customs, beliefs, and practices from one generation to another, often seen as a key part of cultural identity.

Divinity

Pertains to a religious or spiritual aspect, often referring to the state of being divine or associated with a god or a deity.