In July of 2025, Lilac Corporation discovered that it had for the past 10 years capitalized as production costs certain expenses that are properly classified as deductible administrative expenses. The total amount of the expenses as of December 31, 2024 was $300,000 ($60,000 of the item was included in the beginning inventory on January 1, 2024 and $240,000 was previously deducted as cost of goods sold). An automatic accounting method change is available