Goddard has used the FIFO method of inventory valuation since it began operations in Year 1. Goddard decided to change to the weighted-average method for determining inventory costs at the beginning of Year 4. The following schedule shows year-end inventory balances under the FIFO and weighted-average methods: Year FIFO Weighted-average Year 1 $45,000 $54,000 Year2 78,000 71,000 Year3 83,000 78,000 What amount, before income taxes, should be reported in the Year 4 retained earnings statement as the cumulative effect of the change in accounting principle?