Randall Corp. began operations on January 1, 2019, and uses FIFO to cost its inventory. Management is contemplating a change to the average cost method and is interested in determining what effect such a change will have on pre-tax income. Accordingly, the following information has been developed:

Ending Inventory 2019 2020

FIFO $ 480,000 $ 540,000

Average cost 400,000 500,000

Pre-tax Income (calculated using FIFO) 750,000 900,000

Based upon the above information, a change to the average cost method in 2020 would result in pre-tax income for 2020 of

	A.	$ 980,000.
	B.	$ 860,000.
	C.	$ 790,000.
	D.	$ 940,000.