BikeInside, Inc. began operations on January 1, 2015, has a 20% income tax rate and reports only the current year on its financial statements. On December 31, 2020, BikeInside appropriately changed its inventory cost flow assumption to FIFO from Average Cost for both financial reporting and income tax purposes. The change will result in a $3,300,000 increase to its inventory at January 1, 2020. Ignoring income tax effects, what is the cumulative effect of this accounting change on beginning retained earnings?

Group of answer choices

$660,000

$3,300,000

$0

$550,000