On January $1,2025,$ Norton Company changed its inventory costing method from from FIFO to LIFO. If LIFO had been used in $2024,$ the first year of operations, cost of goods sold would have been $$20,000$ higher. Norton has an effective tax rate of $21\%.$ What is the after tax effect on retained earnings for $2024$ as a result of this accounting change?

Decrease retained earnings $$15,800.$

Increase retained earnings $$15,800.$

Decrease retained earnings $$4,200$ and cost of goods sold $$15,800.$

Increase retained earnings $$20,000.$