Reporting a Retrospective Change in Inventory Method Blues Corp. changed its method of accounting for inventory from LIFO to FIFO in 2020 for financial accounting purposes. The 2020 ending inventory was $40,000 under LIFO and $55,000 under FIFO. Blues Corp. reports 2020 and 2019 comparative results. a. What inventory method is used to report results for 2019 and 2020? LIFO in 2019; LIFO in 2020. b. Where in financial statements is it reported, if anywhere, the cumulative effect of prior years not presented? Report as an adjustment to 2020 beginning retained earnings.