On December 31,2014,Artistown Company Appropriately Changed to the FIFO Cost

Multiple Choice

On December 31,2014,Artistown Company appropriately changed to the FIFO cost method from the weighted-average cost method for financial statement and income tax purposes.The change will result in a $700,000 increase in the beginning inventory at January 1,2014.Assuming a 40 percent income tax rate and that no comparative financial statements for prior years are reported,the cumulative effect of this accounting change reported for the year ended December 31,2014,is

A) $700,000.
B) $350,000.
C) $420,000.
D) $280,000.