Sandstone,Inc. ,has consistently included some factory overhead as a current expense,rather than as a cost of producing goods.As a result,the beginning inventory for 2010 is understated by $30,000.If Sandstone voluntarily changes accounting methods effective January 1,2010,the adjustment to the inventory is a § 481 adjustment and $7,500 must be added to taxable income for each year 2010,2011,2012,and 2013.

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The § 481 adjustment of $7,500 needs to be added to taxable income for each year 2010, 2011, 2012, and 2013, as stated in the given information. This makes the statement true.