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10) On December 31, 2021, ABC, Inc. changed its inventory valuation method to FIFO cost from LIFO cost for financial statement and income tax purposes.

10) On December 31, 2021, ABC, Inc. changed its inventory valuation method to FIFO cost from LIFO cost for financial statement and income tax purposes. The change will result in a $280,000 increase in the beginning inventory at January 1, 2021. Assume a 20% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is ______

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