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tresset_1 [31]
3 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]3 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

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Listed below are accounts to use for transactions (a) through (1), each identified by a number. Following this list are the tran
Furkat [3]

Answer:

The accounts to use for transactions is shown below. it also indicates which transaction is placed either in the debit or credit side.

Explanation:

Solution

       Accounts Debited                  Accounts Credited

a.     Utilities Expense                       Utilities Payable

b.     Utilities Payable                              Cash

c.      Prepared insurance                       Cash

d.      Insurance Expense                 Prepared insurance  

e.       Cash                                       Unearned Cash

f        Unearned Fees                       Fees Earned

g.      Office supplies                        Cash, Accounts Payable

h        Cash                                        Notes Payable

i         Interest Expense                     Interest Payable

j         Depreciation Expense-Office  

         (Office Equipment)                Accumulated Depreciation

                                                              (Office Equipment)

7 0
4 years ago
If a customer at a Target store brings a purchase to checkout, and the item is not priced, the clerk at the register can ask the
pshichka [43]
I have no idea sorry man
7 0
3 years ago
Which of the following would be an example of mechanical convection?
sdas [7]

Hi!


Option A is correct.


In cooking, convection is the phenomena that causes molecules with a higher energy at the bottom of a container to travel upwards, and the molecules at the top with a lower energy to sink to the bottom and replace them.

Mechanical convection describes this phenomena as a result of the application of an external force.

This phenomena is restricted to substances that are in liquid, or gaseous state, as molecules of a substance in solid state have a very restricted movement.

Hence, options B, C and D are incorrect.


Hope this helps!



3 0
3 years ago
If the U.S. government starts to sell off its stockpile of cheese:____.
schepotkina [342]

Answer:

D

Explanation:

if the government sells off its cheese, there would be a rightward shift of the supply curve. As a result, equilibrium price would fall and equilibrium quantity supplied would increase.

Due to the government's action, there would be an excess supply of cheese over the demand for cheese. More cheese would be available for sale and less cheese would be purchased.  This would lead to an increase in spoilage rates before sales

4 0
3 years ago
You place half your wealth into tivo stock and the other half into intel bonds. tivo stock's beta = 1.2 and intel bonds' beta is
Butoxors [25]

Weight to wealth in the tivo stock = w1 = 0.5

Weight to wealth in intel bonds = w2 = 0.5

Tivo stock beta (beta1) = 1.2

Intel bond beta (beta2) = 0.90

Portfolio (beta) = w1beta1 + w2beta2 = 0.5 x 1.2 + 0.5 x 0.9

 

The answer is 1.05

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6 0
3 years ago
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