Cumulative effect of the accounting change

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On December 31, 2008, Kean Company changed its method of accounting for inventory from weighted average cost method to the FIFO method. This change caused the 2008 beginning inventory to increase by $420,000. The cumulative effect of this accounting change to be reported for the year ended 12/31/08, assuming a 40% tax rate, is :

A. $420,000.

B. $252,000.

C. $168,000.

D. $0.

Reference no: EM13145779

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