ACCT 312 Week 5 Homework Solutions
Exercise 20-1: Batali Foods = During 2014 and 2015, Batali Foods used FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2016, Batali decided to change to the average method for both financial reporting and tax purposes.
Exercise E20-10: Clinton Poultry Farms: For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2013 for $2,560,000. Its useful life was …..to be six years with a $160,000 residual value. At the beginning of 2016, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is a follows ($ in 000s).
Exercise E20-17: Wardell Company: Wardell Company purchased a mini computer on January 1, 2014, at a cost of $40,000. The computer has been ……using the straight-line method over an estimated five-year useful life with an estimated residual value of $4,000. On January 1, 2016, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900.
Exercise E20-24: For each of the following inventory errors occurring in 2016. Determine the effect of the error on 2016’s cost of goods sold, net income, and retained earnings. Assume that the error is not …..until 2017 and that a periodic inventory system is ….. Ignore income taxes.
ACCT 312 Week 5 Homework