Holder-Webb Company began operations on January 1, 2012, and uses the average-cost method of pricing inventory.

Management is contemplating a change in inventory methods for 2015.

The following information is available for the years 2012-2014:

	Net Income Computed Using
	Average-Cost Method	FIFO Method	LIFO Method
2012	$15,426	$18,160	$12,078
2013	18,514	21,077	14,796
2014	20,059	25,954	16,789

Required:

(a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2015.

(b) Determine net income to be reported for 2012, 2013 and 2014, after giving effect to the change in accounting principle.

(c) Assume Holder-Webb Company used the LIFO method instead of the average cost method during the years 2012-2014.

In 2015, Holder-Webb changed to the FIFO method.

Prepare the journal entry necessary to record the change in principle.