On January 1, 2017, Robin Ltd

Multiple Choice

On January 1, 2017, Robin Ltd.changed its inventory valuation method from weighted-average cost to FIFO for financial statement and income tax purposes, to make their reporting as reliable and more relevant.The change resulted in a $600,000 increase in the beginning inventory at January 1, 2017.Assume a 25% income tax rate.The cumulative effect of this accounting change reported for the year ended December 31, 2017 is

A) $0.
B) $150,000.
C) $450,000.
D) $600,000.