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On January $1,2023,$ Crane Corp, changed its inventory costing from FIFO to average cost for financial statement and income tax purposes, to make its reporting as reliable and more relevant. The change resulted in a $$624000$ increase in the beginning inventory at January $1,2023.$ Assume a $30\%$ income tax rate. The cumulative effect of this accounting change should be reported by Crane in its $2023$

Income statement as $$436800$ other comprehensive income.

Retained earnings statement as a $$436800$ addition to the beginning balance

Income statement as a $$624000$ cumulative effect of accounting change.

Retained earnings statement as a $$624000$ addition ta the beginning balance.