On December 31,2014,Ohio Corporation Appropriately Changed Its Inventory Valuation Method

question 73

Multiple Choice

On December 31,2014,Ohio Corporation appropriately changed its inventory valuation method to FIFO cost from LIFO cost for both financial statement and income tax purposes.The change will result in a $140,000 increase in the beginning inventory at January 1,2014.Assume a 30 percent income tax rate.The cumulative effect of this accounting change Ohio for the year ended December 31,2014,is

• A) $0.
• B) $42,000.
• C) $98,000.
• D) $140,000.

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Definitions:

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