Goodee Bakery is considering a change in its inventory valuation method. Goodee Bakery currently uses the FIFO method and is considering a change to the LIFO method. Goodee Bakery started the year on January 1 with inventory at a FIFO cost of $23,500 and a LIFO cost of $20,600. The ending inventory on December 31 is $25,750 at FIFO cost and $21,600 at LIFO cost. The LIFO effect is A. $2,900 B. $4,150 OC. $7,050 D. $1,250