Question: On December 31, year 10, Brown Company changed its inventory valuation method from the weighted aver-age method to FIFO for financial statement purposes. The change

On December 31, year 10, Brown Company changed its inventory valuation method from the weighted aver-age method to FIFO for financial statement purposes. The change will result in an $ 800,000 decrease in the beginning inventory at January 1, year 10. The tax rate is 30%. The cumulative effect of this accounting change for the year ended December 31, year 10 in the statement of retained earnings is:
a. $ 0
b. $ 800,000
c. $ 240,000
d. $ 560,000 .

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