In 2018, Bevins Company decided to change from LIFO to FIFO due to better representation of the flow of inventory and costs. Bevins started the business in 2016. Bevins tax rate is 35%. The following analysis was provided by management:

Ending Inventory LIFO FIFO Net Income

12/31/2016 $375,650 $405,900 975,000

12/31/2017 $360,450 $410,750 1,350,000

12/31/2018 $365,975 $445,775 1,389,500

Required:

1) Prepare the journal entry necessary to record the change.

2) What amount of net income would Bevins report in 2016, 2017, and 2018?