During the third quarter of its 2X7 fiscal year, Press Company is considering the different methods of reporting accounting changes on its interim segments Preliminary data are available for the third quarter of 20X7, ending on September 30, 2007, prior to any adjustments required for any accounting changes. The company's taxtate is 40 percent of income. Selected interim data for the company, in thousands of dollars, follow: Required Quarter Ended Net Gross Earnings from Operations, Sales Profit before Tax Net Earnings 20X7 March 31 $388 $133 $27 $16.2 June 30 406 135 30 18.0 September 30 (preliminary) 4281 151 32 192 20X6 March 31 394 139 27 16.2 June 30 416 151 32 19.21 September 30 403 148 31 18.6 December 31 385 134 31 18.6 For the following independent cases, present the company's interim financial data for the three quarters of 20X7 and the comparative data for 20X6, assuming that in a meeting on the last day of the third quarter of 20X7, the company decides to make the specified accounting change. 7. The company decides to change from the FIFO method of accounting for inventory to the LIFO method. The accounting department has prepared the following schedule of data, in thousands of dollars, showing the cost of goods sold each quarter under the LIFO method. The preceding selected interim data are age 727 based on the FIFO method. The accounting department has determined that there will be no difference in cost of goods sold prior to January 1, 20X6 Quarter Ended LIFO 20X7: March 31 $265 June 30 283 September 30 291 20X6: March 31 267 June 30 278 September 30 280 December 31 260 5. The company decides to switch from the straight-line method of depreciation to the accelerated method because of a change in the estimated future benefits from the asset. The company has determined that the accumulated depreciation would have been $42,000 higher as of January 1, 200X6, if the accelerated method had been used. The depreciation expense determined under the two methods follows: Quarter Ended Depreciation Expense-Accelerated Method 20X7: March 31 June 30 September 30 20X6: $45 44 42 Depreciation Expense- Straight-Line Method $45 45 45 March 31 50 40 June 30 48 40 September 30 47 40 December 31 45 40 8 8 8 8