E22-3 (L01) (Accounting Change Taveras Co. decides at the beginning of 2017 to adopt the FIFO method of inventory valuation. Taveras had used the LIFO method for financial reporting since its inception on January 1, 2015, and had maintained records adequate to apply the FIFO method retrospectively. Taveras concluded that FIFO is the preferable inventory method because it reflects the current cost of inventory on the balance sheet. The following table presents the effects of the change in accounting principles on inventory and cost of goods sold. Cost of Goods Sold Determined b LIFO Method FIFO Method Date January 1, 2015 December 31, 2015 December 31, 2016 December 31, 2017 LIFO Method FIFO Method 100 200 320 80 240 390 800 1,000 1,130 820 940 1,100 Other information: 1. For each year presented, sales are $3,000 and operating expenses are $1,000. 2. Taveras provides two years of financial statements. Eamings per share information is not required (a) Prepare income statements under LIFO and FIFO for 2015, 2016, and 2017 (b) Prepare income statements reflecting the retrospective application of the accounting change from the LIFO method to the FIFO method for 2017 and 2016