On January 2, 2000, Getaway Company began expensing certain costs as they are incurred. In the past, the company had treated these costs as a prepaid asset which was then allocated to expense over several years. On January 2, 2000, the company's records included prepaid expense in the amount of $150,000. The appropriate tax rate is 30%. The cumulative effect on 2000 earnings resulting from this change is:
1) $ 0.
2) $45,000.
3) $150,000.
4) $105,000.