Exercise 4-14 (Part Level Submission)

Headland Company began operations in 2015 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2017, in accordance with other companies in its industry, Headland changed its inventory pricing to FIFO. The pretax income data is reported below.

Year		Weighted-Average			FIFO
2015		$390,600			$414,000
2016		410,000			421,500
2017		414,700			473,400

Compute the cumulative effect of the change in accounting principle from weighted-average to FIFO inventory pricing.