. The Jack Company began its operations on January 1, 2016, and used the LIFO method of accounting for its inventory. On January 1, 2018, Jack Company adopted FIFO in accounting for its inventory. The following information is available regarding cost of goods sold for each method:

	LIFO Cost of	FIFO Cost of
Year	Goods Sold	Goods Sold
2016	$470,000	$350,000
2017	690,000	450,000
2018	700,000	540,000

Assuming a tax rate of 35% and the same accounting change adopted for tax purposes, Prepare the journal entry to be made at the beginning of 2018 to adjust the opening retained earnings on the 2018 financial statements?