n December 31, 2020, Zodiac Corporation appropriately changed its inventory costing method from FIFO cost to weighted  average cost method for financial statement and income tax purposes. The change will result in a P700,000 decrease in the beginning inventory of January 1, 2020. Assume a 30% income tax rate. The amount of adjustment to the January 1, 2020 balance of retained earnings is:  a. P490,000 addition c. P700,000 addition  b. P490,000 deduction d. P700,000 deduction

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