On December 31 . 2014, Ohio Corporation appropriately changed its inventory valuation method to FIFO cost from LIFO cost for both financial statement and income tax purposes. The change will result in a $140,000 increase in the beginning inventory at January 1 . 2014 . Assume a 30 percent income tax rate. The cumulative effect of this accounting change Ohio for the year ended December 31 . 2014,
is
a. $0.
b. $42,000.
c. $98,000.
d. $140,000.
C
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