Described below are six independent and unrelated situations involving accountin
ID: 2380222 • Letter: D
Question
Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2013 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 40% in all years. Any tax effects should be adjusted through the deferred tax liability account.
Fleming Home Products introduced a new line of commercial awnings in 2012 that carry a one-year warranty against manufacturer
a.Fleming Home Products introduced a new line of commercial awnings in 2012 that carry a one-year warranty against manufacturer