Energy,Inc Began Operations in 2015 Using LIFO Inventory Methods

question 335

Multiple Choice

Energy,Inc began operations in 2015 using LIFO inventory methods.In 2016,management decided they should have chosen FIFO.The beginning inventory for 2016 using LIFO was $125,000.Under the FIFO method,the beginning inventory would have been $140,000.The adjustment to inventory for the change in accounting principle for 2016 would be ________.

• A)$0
• B)$15,000 debit
• C)$15,000 credit
• D)$30,000 debit

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Definitions:

Prenatal Care

Healthcare provided to women during pregnancy to ensure the health of both mother and fetus, involving regular check-ups and screenings.

Birth Defects

Abnormalities of structure, function, or body metabolism present at birth that may lead to physical or mental disabilities.

Anemia

A medical condition characterized by a deficiency in the number or quality of red blood cells, which can lead to fatigue and other symptoms due to a lack of oxygen transport in the body.

Basal Metabolic Rate

The amount of energy expended while at rest in a neutrally temperate environment, necessary to maintain the function of the body's vital organs.