The Jack Company began its operations on January 1, 2016, andused the LIFO method of accounting for its inventory. On January 1,2018, Jack Company adopted FIFO in accounting for its inventory.The following information is available regarding cost of goods soldfor each method: LIFO Cost of FIFO Cost of Year Goods Sold GoodsSold 2016 $470,000 $350,000 2017 690,000 450,000 2018 700,000540,000 Assuming a tax rate of 35% and the same accounting changeadopted for tax purposes, how would the effect of the accountingchange be reported in opening retained earnings on the 2018financial statements?

A) +$360,000 restatement

B) no restatement

C) –$700,000 restatement

D) +$234,000 restatement

I know the correct answer is D, but I need to see the work forthis problem. How did they arrive at this answer?