On January 2, 2016, Getaway Company began expensing certain costs as they are incurred. In the past, the company had treated these costs as a prepaid asset which was then allocated to expense over several years.

On January 2, 2016, the company's records included prepaid expense in the amount of $150,000. The appropriate tax rate is 30%. The cumulative effect on 2016 earnings resulting from this change is: