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On December 31, 2021, Blue, Inc. changed its inventory valuation method to FIFO cost from weighted-average cost for financial statement and income tax purposes. The

On December 31, 2021, Blue, Inc. changed its inventory valuation method to FIFO cost from weighted-average cost for financial statement and income tax purposes. The change will result in a $2,800,000 increase in the beginning inventory at January 1, 2021. Assume a 30% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is _______

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