On January 1, 2022, Adam Corp. changed its inventory method to FIFO from LIFO for both financial and income tax reporting purposes. The change resulted in a $500,000 increase in the January 1, 2022 inventory. Assumed that the income tax rate for all years is 20%. The effect of the accounting changes should be reported by A) Retain balance earnings Adam in its 2022 statement as a $400,000 addition to the begining B) Income statement as a $400,000 cumulative effect of accounting c) changed gs statement as a $500,000 addition to the beginning bulanings D) Income statement as a $500,000 cumulative effect of accounting change