Question: On January 1 , 2 0 2 5 , Cullumber Corp. changed its inventory method to FIFO from LIFO for both financial and income tax

On January 1,2025, Cullumber Corp. changed its inventory method to FIFO from LIFO for both financial and income tax reporting purposes. The change resulted in a \(\$ 1150000\) increase in the January 1,2025 inventory. Assume that the income tax rate for all years is \(20\%\). The cumulative effect of the accounting change should be reported by Cullumber in its 2025income statement as a \(\$ 920000\) cumulative effect of accounting change.retained earnings statement as a \(\$ 1150000\) addition to the beginning balance.income statement as a \(\$ 1150000\) cumulative effect of accounting change.retained earnings statement as a \(\$ 920000\) addition to the beginning balance.
On January 1 , 2 0 2 5 , Cullumber Corp. changed

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