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Gusto Manufacturing changed its inventory costing method from last-in, first-out (LIFO) to first-in, first-out (FIFO). Assuming there is adequate justification for the change, Gusto would: (Points: 10)Report the change on its income statement as a component of income from continuing operations, before tax. Report the cumulative effect of the change on its income statement, net of tax, after income from continuing operations but before discontinued operations or extraordinary items. Report the cumulative effect of the change on its income statement, net of tax, after income from continuing operations, discontinued operations, and extraordinary items. Report the cumulative effect of the change as an adjustment to beginning retained earnings, net of tax.
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