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:

Sherman Act

A landmark federal statute passed in the United States to outlaw monopolistic business practices.

Monopolies Illegal

A legal stance or policy where monopolies are prohibited due to their potential to limit competition, raise prices, and reduce choices for consumers.

Supreme Court

The highest judicial court in a country or state, responsible for interpreting the constitution and laws and applying their interpretations to major legal cases.

Antitrust Cases

Legal actions taken to address or prevent business practices that reduce competition in the marketplace.