In 2020, Frost Company, which began operations in 2018, decided to change from LIFO to FIFO because management believed that FIFO better represented the flow of their inventory. Management prepared the following analysis showing the effect of this change: Ending Inventory LIFO FIFO Cumulative Difference 12/31/2018 $240,500 $275,300 $34,800 12/31/2019 246,400 306,200 59,800 12/31/2020 254,400 326,200 71,800 Frost reported net income of $2,584,500, $2,313,500, and $2,033,500 in 2018, 2019, and 2020, respectively. The tax rate is 35%. Analysis Shaded cells have feedback. 2018 2019 2020 Net income under FIFO $2,607,120 $2,329,750 $2,041,300 X