In 2016, Bevins Company decided to change from LIFO to FIFO due to better representation of the flow of inventory and costs. Bevins started the business in 2014. Bevin's tax rate is 35%. The following analysis was provided by management: Required:
1) Prepare the journal entry necessary to record the change.
2) What amount of net income would Bevins report in 2014, 2015, and 2016?

Question

In 2016, Bevins Company decided to change from LIFO to FIFO due to better representation of the flow of inventory and costs. Bevins started the business in 2014. Bevin's tax rate is 35%. The following analysis was provided by management:  Required:
1) Prepare the journal entry necessary to record the change.
2) What amount of net income would Bevins report in 2014, 2015, and 2016?

Quizplus · Accepted Answer

The Answer of In 2016, Bevins Company decided to change from LIFO to FIFO due to better representation of the flow of inventory and costs. Bevins started the business in 2014. Bevin's tax rate is 35%. The following analysis was provided by management:  Required:
1) Prepare the journal entry necessary to record the change.
2) What amount of net income would Bevins report in 2014, 2015, and 2016?

In 2016, Bevins Company Decided to Change from LIFO to FIFO