Question 12 9+3-12 marks) West Zone Company changed its accounting policy in 20

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Question 12 9+3-12 marks) West Zone Company changed its accounting policy in 20 to 2015, inventories were valued using a weighted-average cost (WAC) mcthod. In 2016 changed to first-in, first-out (FIFO), as it was considered to more accurately reflect the usage and now of inventories in the economic cycle. The impact on inventory valuation was determined to be Soo,go wwer 16 with respect to the valuation of inventories. Up the method was At December 31, 2014, a decrease of $11,000 At December 31, 2015, an increase of $10,000 At December 31, 2064, a decrease of $12,000 The internal auditor of the company noticed in 2016 that in 2015 the entity had omitted to record in its books amortization expense amounting to $25,000 relating to an intangible asset. An extract from the statemert of comprehensive income for the years ended December 31, 2015 and 2016, before correction of the erro follows. Description Sales Revenue Less: Cost of Sales Gross proft General and administrative expenses Selling and distribution expenses Amortization Net income before income taxes Income taxes Net profit 2016 $500,000 (150,000) 350,000 (80,000) (20,000) (25,000) 225,000 45,000 180,000 2015 $400,000 (140,000) $260,000 (70,000) (20,000) 170,000 34,000 136,000 The income tax rate was 20% for both years. Not Provided? Required: Present the change in the Statement of Comprehensive Income and Retained

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