Sandstone, Inc

question 59

True/False

Sandstone, Inc., has consistently included some factory overhead as a current expense rather than as a cost of producing goods.As a result, the beginning inventory for 2019 is understated by $10,000.If Sandstone voluntarily changes accounting methods effective January 1, 2019, the positive adjustment to the inventory is a § 481 adjustment, and $2,500 must be added to taxable income for each year 2019, 2020, 2021, and 2022.

---

Definitions:

Circuit

An electrical circuit is a path in which electrons from a voltage or current source flow.

Widening

The process of making something broader or more expansive in size, scope, or extent.

Blood Pressure

The force that circulating blood exerts against the walls of blood vessels.

ECG

Electrocardiogram, a non-invasive test that records the electrical activity of the heart to assess its health and detect any abnormalities.