Blago Wholesale Company began operations on January 1, 20X1, and uses the average cost method in costing its inventory. Management is contemplating a change to the FIFO method in 20X2 and is interested in determining how such a change will affect net income. Accordingly, the following information has been developed: Final inventory: Average cost FIFO 20X1 20X2 $150,000 $255,000 160,000 270,000 Condensed income statements for Blago Wholesale appear below: Sales Cost of goods sold Gross profit Net income Selling, general, and administrative 20X1 $1,000,000 600,000 20X2 $1,200,000 720,000 400,000 480,000 250,000 275,000 $ 150,000 $ 205,000 Required: Based on this information, what would 20X2 net income be after the change to the FIFO method? Ignore any income tax effects of this change in accounting method. Sales Cost of goods sold Gross profit Selling, general, and administrative Net income 20X1 20X2