BBaker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2013. Baker has an effective income tax rate of 30 percent and 100,000 shares of common stock issued and outstanding. The following additional information is available: Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2013. Baker has an effective income tax rate of 30 percent and 100,000 shares of common stock issued and outstanding. The following additional information is available:

Assuming Baker makes the change in the first quarter of 2012, how much is reported as net income for the first quarter of 2012?

$300,000.

A. 300,000

B. 322,750

C. 335,000

D. 265,000

E. 277,250

Cost of goods sold Cost of goods sold After-tax LEIEO LIFO Difference LDifference S 40,000 $75,000 $35,000 $22.750 Prior to 2013 S 8,000 S 5,200 quarter 2013 10,000 $18,000 Net income before effect of accounting change: quarter 2012 $300,000 t quarter 2013 $500,000