Question: On January 1, 2018, Delta changed its inventory valuation method from LIFO to FIFO for financial statement purposes. The change will result in an $800,000

On January 1, 2018, Delta changed its inventory valuation method from LIFO to FIFO for financial statement purposes. The change will result in an $800,000 increase in inventory at January 1, 2018. The tax rate is 30%. How much should retained earnings be adjusted (indicate direction and dollar amount) so that it is correct (using the new method) as of January 1, 2018

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