On December 31, 2021, Carla Vista, Inc. appropriately 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 $3850000 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 O $2695000. O $3850000. $0. O $1155000