John Company changed its inventory cost method to Lifo from Fifo at the beginning of 2009 for both financial statement and income tax purposes.

John Company changed its inventory cost method to Lifo from Fifo at the beginning of 2009 for both financial statement and income tax purposes. Under Fifo the inventory at January 1, 2009 was estimated to be $15 million. A Lifo reserve at the end of 2009 was calculated to be $706,000. How should this change be reported?