Jack's Fireworks, Which Was Established in 2007, Changed Its Method

question 35

Multiple Choice

Jack's Fireworks, which was established in 2007, changed its method of accounting for inventories from the average cost method to the first-in, first-out (FIFO) method in 2009. Cost of goods sold for the periods 2007-2009 under FIFO and the average cost method were: Jack's Fireworks is subject to a 30% income tax rate. In its income statement for the year ended December 31, 2009, Jack's would report the cumulative effect of a change in accounting principle, net of income taxes, of:

• A)$(15,400).
• B)$ 0.
• C)$ 19,600.
• D)$ ( 4,200).

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Definitions:

Adaptive Coping Skill

Strategies or techniques that individuals use to manage and navigate stressful situations effectively.

Spirituality

An individual's sense of peace, purpose, and connection to others, and beliefs about the meaning of life.

Psychosocial Development

The development process that involves changes in both psychological and social aspects throughout an individual's lifetime.

Erickson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of humans.