Waterway Company began operations in 2018 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2020, in accordance with other companies in its industry, Waterway changed its inventory pricing to FIFO. The pretax income data is reported below. Assume a 35% tax rate in all years. (a) What is Waterway's net income in 2020 ? Net Income \$ eTextbook and Media Attempts: 1 of 2 used (b) Compute the cumulative effect of the change in accounting principle from weighted-average to FIFO inventory pricing. Net effect \$