On January 1, 2018, Frost Corp. changed its inventory method to FIFO from LIFO, for both financial and income tax reporting purposes. The change resulted in a $900,000 increase in the January 1, 2018 inventory. Assume that the income tax rate for all years is 30%. The cumulative effect of the accounting change should be reported by Frost in its 2018 ________.

a. retained earnings statement, as a $630,000 addition to the beginning balance
b. income statement, as a $630,000 cumulative effect of accounting change
c. retained earnings statement, as a $900,000 addition to the beginning balance
d. income statement, as a $900,000 cumulative effect of accounting change