Skysong Company began operations in 2015 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2017, in accordance with other companies in its industry, Skysong changed its inventory pricing to FIFO. The pretax income data is reported below.

Year

Weighted-Average

FIFO

2015$377,500$415,2002016401,100426,8002017417,200475,800

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What is Skysong's net income in 2017? Assume a35% tax rate in all years.

Net Income$

Compute the cumulative effect of the change in accounting principle from weighted-average to FIFO inventory pricing.