Lego Company has used the FIFO method since it began operations in 2023.Lego changed tothe weighted average method in 2026.The change was justified.In its 2026 financial statements, Lego included comparative statements for 2025 and 2024.The following are the year-endinventorybalances under the FIFO and weighted average methods.

Year

FIFO

Weighted Average

2023

$90,000

$108,000

2024

$150,000

$132,000

2025

$168,000

$145,000

What adjustment should be made toNet Incomeretrospectively for the year ended December 31, 2025?

Select one:

a.$23,000 decrease

b.$36,000 increase

c.$41,000 increase

d.$5,000 decrease

e.$42,000 decrease