This paper concentrates on the primary theme of John Company changed its inventory cost method to Lifo from Fifo in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 79. For more details and full access to the paper, please refer to the site.
John Company changed its inventory cost method to Lifo from Fifo at the beginning of 2009 for both financial statement and income tax purposes. Under Fifo the inventory at January 1, 2009 was estimated to be $15 million. A Lifo reserve at the end of 2009 was calculated to be $706,000. How should this change be reported?