During year 3, Orca Corp. decided to change from the FIFO method of inventory valuation to the weightedaverage method. Inventory balances under each method were as follows:

FIFOWeightedaverageJanuary 1, year 3$71,000$77,000December 31, year 379,00083,000

Orca's income tax rate is 30%.

In accordance with the Codification, Orca should report the effect of this accounting change as a(n)

Group of answer choices

-Prior period adjustment.

-Component of income from continuing operations.

-Retrospective application to previous year's financial statements.

-Component of income after extraordinary items.