Machino,Inc

question 170

Not Answered

Machino,Inc.began operations on January 1,2014.During 2016,management decided to change from average-cost method to FIFO for its merchandise inventories.The change was effective at January 1,2016.Management determined that cost of goods sold for each method would be:
The company's statements as reported under average-cost before implementing the accounting change for 2016,2015,and 2014,respectively,are presented below.The income tax rate for Machino is 40%.
Required:

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Definitions:

Consequences

The outcomes or effects that result from a particular action or condition.

Economic Injury

Financial harm or damage suffered by an individual, entity, or economy, often due to external factors or actions.

Intentional Tort

A wrongful act done on purpose that causes harm to someone else, including acts like assault or fraud.

Physical Injury

Bodily harm or damage to a person's body, as opposed to emotional or psychological harm.