The Greenriver Manufacturing Company manufactures two products: Raft and Float. At December 31, 2010, Greenriver used the FIFO inventory method. Effective January 1, 2011, Greenriver changed to the LIFO inventory method. The retroactive effect of this change is not determinable, and as a result, the ending inventory for 2010 for which the FIFO method was used is also the beginning inventory for 2011 for the LIFO method. Any layers added during 2011 should be costed by reference to the first acquisitions of 2011. The information below was available from Greenriver inventory records for the two most recent years:

Instructions:
Compute the effect on net income for the year ended December 31, 2011, resulting from the change from the FIFO to the LIFO inventory method. Ignore incometaxes.

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Raft Float Units Unit Cost Units Unit Cost 2010 purchases: January 7 April 16 November 8 December 13 5,000 ...12,000 17,000 0,000 $4.00 4.50 5.00 22,000 $2.00 18,500 2.50 2011 purchases: February II May 20 October 15 O 3,000 . 8,000 20,000 7.00 7.50 8.00 23,000 3.00 15,500 3.50 Units on hand: December 3, 2010 December 31, 201T 5,000 6,000 14,500 3,000