CostKo Corp. reported net income of $ and $ in Year and Year respectively. In Year the current year the company changed its method of accounting for inventory from weighted average to FIFO firstin firstout As a result of using the new method FIFO net income would have been $ and $ in Year and Year respectively.
a Classify the accounting change. Answer
Change in accounting principle
b Determine the proper accounting approach. Answer
Prospective treatment
c In reporting comparative income statements in Year :
What net income amounts are included for Year Answer
What net income amounts are included for Year
