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belka [17]
2 years ago
13

Jacqueline is in the market for a new laptop. She has spent quite a bit of time gathering information and thinking about the pur

chase. She has asked her friends for opinions about the models they own and is happy that there are a lot of models to choose from. Jacqueline is most likely what type of adopter
Business
1 answer:
aalyn [17]2 years ago
8 0

Based on the fact that Jacqueline had to spend time to research before she made her decision, she is most likely an<u> early majority.</u>

<h3>Who are the early majority?</h3>

These are people who buy a good around the same time as most people but not too log after a product has been released.

They tend to embark on a lot of research before they make a decision which is what Jacqueline is doing.

Find out more on the early majority at brainly.com/question/15858673.

#SPJ1

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Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning
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Answer:

a. The balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had been used in prior years is $744,450.

b. Debit Inventory for $53,000; Credit Income tax payable for $18,550; and Credit Retained earnings for $34,450.

Explanation:

Note: There is an error in the date stated in the requirements of the question as they are different from the date in the body of the question. The requirements are therefore restated with the correct date before answering the question as follows:

a. Calculate the balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had been used in prior years.

b. Prepare the journal entry at the beginning of 2021 to record the change in principle.

The explanation of the answer is now given as follows:

a. Calculate the balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had been used in prior years.

The effect of LIFO is to overstate the cost of goods sold and understated the retained earnings.

The balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had been used in prior years can therefore be determined as follows:

Inventory understatement net of tax = $53,000 * (100% - Tax rate) = $53,000 * (100% - 35%) = $34,450

Therefore, we have:

Retained earnings under FIFO = Retained earnings as reported + Inventory understatement net of tax = $710,000 + $34,450 = $744,450

Therefore, the balance in retained earnings at the time of the change (beginning of 2021) as it would have been reported if FIFO had been used in prior years is $744,450.

b. Prepare the journal entry at the beginning of 2021 to record the change in principle.

The journal entry will look as follows:

<u>Details                                                       Debit ($)        Credit ($)    </u>

Inventory                                                    53,000

Income tax payable (53,000 * 35%)                                18,550

Retained earnings                                                            34,450

<u><em>(To record the change in principle.)                                                 </em></u>

7 0
3 years ago
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