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:

Tricyclic

A class of antidepressant drugs that work by inhibiting the reuptake of certain neurotransmitters, thereby increasing their levels in the brain.

MAO Inhibitor

An antidepressant drug that prevents the action of the enzyme monoamine oxidase.

Tyramine

A chemical that, if allowed to accumulate, can raise blood pressure dangerously. It is found in many common foods and is broken down by MAO.

MAO Inhibitors

A class of medications used to treat depression by preventing the breakdown of monoamine neurotransmitters in the brain, thus increasing their levels.