On March 31, 2019, Osborne changed from the completed contract method to the percentage of completion method. The following computations present income on both bases: Methods 2019 2018 2017 Completed Contract $12,000 $12,000 $12,000 Percentage of Completion 15,400 20,000 24,000 What is the amount of the cumulative effect of this accounting change made by Osborne for the year 2019 assuming a tax rate of 20%?

Group of answer choices

$0.

$2,720.

$16,000.

$18,720.