Current Attempt in Progress

Carla, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in $2025.$ The increase in the prior year's income before taxes is $$1,150,000.$ The tax rate is $20\%.$

Prepare Carla's $2025$ journal entry to record the change in accounting principle. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit