(a) Assuming that the tax rate is35% what is the amount of

(a) Assuming that the tax rate is35% what is the amount of net income that would be reported in 2015? (b) What entry(ies) are necessary to adjust the accounting records for the change in accounting principle? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required select No Entry for the account titles and enter 0 for the amounts.) Warning Don’t show me this message again for the assignment Retained earnings reported under LIFO are as follows. Other information: Warning Don’t show me this message again for the assignment Income Statement For the Year Ended December 31 Prepare income statements under FIFO for 2012 2013 and 2014. Income Statement For the Year Ended December 31 Warning Don’t show me this message again for the assignment Income Statement For the Year Ended December 31 Warning Don’t show me this message again for the assignment Warning Don’t show me this message again for the assignment The equipment has been depreciated using the sum-of-the-years-digits method for the first 3 years for financial reporting purposes. In 2015 the company decided to change the method of computing depreciation to the straight-line method for the equipment but no change was made in the estimated service life or salvage value. It was also decided to change the total estimated service life of the building from 30 years to 40 years with no change in the estimated salvage value. The building is depreciated on the straight-line method. (Round answers to 0 decimal places e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required select No Entry for the account titles and enter 0 for the amounts.) Warning Don’t show me this message again for the assignment Prepare the general journal entries that should be made at December 31 2015 to record these events. (Ignore tax effects.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required select No Entry for the account titles and enter 0 for the amounts.) (Ignore tax considerations.) (a) Assume that in 2015 Ferreri decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2015 and show net income reported for 2012 2013 2014 and 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required select No Entry for the account titles and enter 0 for the amounts.) (b) Assume that in 2015 Ferreri which had been using the LIFO method since incorporation in 2012 changed to the FIFO method of pricing inventories. Prepare the journal entry necessary to record the change in 2015 and show net income reported for 2012 2013 2014 and 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required select No Entry for the account titles and enter 0 for the amounts.) Warning Don’t show me this message again for the assignment Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required select No Entry for the account titles and enter 0 for the amounts.)

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