1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tresset_1 [31]
2 years ago
11

On December 31, 2015, Howells, Inc. appropriately changed its inventory valuation method to FIFO cost from weighted-average cost

for financial statement and income tax purposes. The change will result in a $2,000,000 increase in the beginning inventory at January 1, 2015. Assume a 30% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is Group of answer choices $0. $1,400,000. $1,750,000. $2,500,000.
Business
1 answer:
il63 [147K]2 years ago
5 0

Answer:

$1,400,000

Explanation:

According to the scenario, computation of the given data are as follows,

Increase in beginning inventory = $2,000,000

Income tax rate = 30%

So, we can calculate the effect on beginning retained earning by using following formula,

Cumulative effect = Increase beginning inventory × (1 -  tax rate)

= $2,000,000 × ( 1 - 30%)

= $2,000,000 × 70%

= $1,400,000

You might be interested in
what is the most appropriate closing for a business letter? a. your friend, b. sincerely, c. anxiously, d. take care,
lesya692 [45]
"Sincerely" is definitely the most appropriate closing doe a business letter. The other choices are too chummy.
5 0
3 years ago
A bookstore organizes its stock by topic. It has a mystery novel section, a romance novel section, a how-to-do-it section, a tra
ANEK [815]

Answer:

The correct answer is the second option: Item usage book cover.

Explanation:

To begin with, in the field of business management that focus specifically in the bookstores when they talk about an "item usage book cover" presentation it means that the managers decide to organize the stock by topic and that is related to the book cover and therefore to its item so that is why that they would have a mystery novel section, a romance novel section and much more of that. So every customer will understand inmediately that the bookstore is structured by the item of the book that could be easily recognize sometimes with its cover.

8 0
2 years ago
Ben learns that the company was going to be laying off several employees over the next several months. He knew that the rumor mi
sleet_krkn [62]

Answer:

D. Call an all staff meeting and give everyone the news at once.

Explanation:

Instead of letting the rumors spread throughout the company, what Ben is supposed to do is have a meeting with his entire staff and let all of them know at once what's going on. This way, he will be clear and direct and won't allow for gossip to spread throughout his company and he himself will address the issue head-on. This way he won't leave room for misinterpretation as he will explain what is going to happen.

5 0
3 years ago
How can money in a savings account grow
Masteriza [31]
The bank puts interest in your account because they take sum of it to loan to ppl and it’s goes through a lot and comes back to your account and then sum
7 0
2 years ago
Pls whoever answer this ASAP, I'LLMARK YOU BRAINLIEST... PROMISE
Taya2010 [7]

Answer:

I AM SO CONFUSED

5 0
2 years ago
Other questions:
  • Gains are: a) Inflows from selling a product or service to a customer b) Increases in equity resulting from transfers of assets
    14·1 answer
  • Johnson Production Company paid a dividend yesterday of $3.50 per share. The dividend is expected to grow at a constant rate of
    10·1 answer
  • Rosenthal company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the uretha
    7·1 answer
  • Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following locat
    6·1 answer
  • A local car dealer offers "zero percent" interest on a $20,000 automobile for 36 monthly payments. if a customer either pays cas
    9·2 answers
  • Ruggles Circuit Company manufactures circuit boards for other firms. Management is attempting to search for ways to reduce manuf
    9·1 answer
  • The difficulty of the ___________estimate is that the measure of remaining budget changes depending on whether you are currently
    10·1 answer
  • Jordan is considering three choices of spending the new year's eve. Option A is to dine outside at a luxury restaurant; option B
    10·1 answer
  • Assume a company has a $350 credit (not cash) sale. how would the transaction appear if the business uses accrual accounting?
    14·1 answer
  • Utimately, to be successful, a business must
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!