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(.. Concord Pharmacies, Inc. started operations on January 1, 2014. The company initially used the average-cost method to value its inventory for both book and tax purposes. Effective January 1, 2018, Concord elected to change its inventory valuation method to the FIFO basis for financial reporting purposes. Concord still uses the average-cost method on the company's tax returns. Concord is subject to a 35% tax rate. The following information is available for net income after tax for both the FIFO and the average-cost methods. (Click the icon to view net income after tax for both methods.) Read the requirements. Requirement a. Prepare the journal entry required to record the accounting change on January 1, 2018. (Record debits first, then credits. Exclude explanations from any journal entries.) Account January 1, 2018 Net income after tax table Net Income Average Cost FIFO Year Ended December 31, 2014 December 31, 2015 $ 233,000 $ 308,900 303,000 385,700 December 31, 2016 306,300 401,200 December 31, 2017 419,800 535,500 December 31, 2018 502,500 594,100 - Requirements a. Prepare the journal entry required to record the accounting change on January 1, 2018. b. Prepare the partial comparative income statements for the 3 years ending December 31, 2018. c. Prepare the footnote to disclose the change from the average cost to the FIFO basis. Designate the note as "Note A: Change in Method of Accounting for Inventory Valuation." (.. Concord Pharmacies, Inc. started operations on January 1, 2014. The company initially used the average-cost method to value its inventory for both book and tax purposes. Effective January 1, 2018, Concord elected to change its inventory valuation method to the FIFO basis for financial reporting purposes. Concord still uses the average-cost method on the company's tax returns. Concord is subject to a 35% tax rate. The following information is available for net income after tax for both the FIFO and the average-cost methods. (Click the icon to view net income after tax for both methods.) Read the requirements. Requirement a. Prepare the journal entry required to record the accounting change on January 1, 2018. (Record debits first, then credits. Exclude explanations from any journal entries.) Account January 1, 2018 Net income after tax table Net Income Average Cost FIFO Year Ended December 31, 2014 December 31, 2015 $ 233,000 $ 308,900 303,000 385,700 December 31, 2016 306,300 401,200 December 31, 2017 419,800 535,500 December 31, 2018 502,500 594,100 - Requirements a. Prepare the journal entry required to record the accounting change on January 1, 2018. b. Prepare the partial comparative income statements for the 3 years ending December 31, 2018. c. Prepare the footnote to disclose the change from the average cost to the FIFO basis. Designate the note as "Note A: Change in Method of Accounting for Inventory Valuation
