Kindly show work. thanks

6 The Pyramid Company has used the LIFO method of accounting for inventory during its first two years of operation, 2016 and 2017. At the beginning of 2018, Pyramid decided to change to the average cost method for both tax and financial reporting purposes. The following table presents information concerning the change for 2016-2018. The income tax rate for all years is 40%. Income before Income Tax Income 2016 2017 Average Cost Method $ 94,200 48,500 $142,700 $ 52,400 LIFO Method $ 62,800 38,800 $101,600 $ 46,700 Difference $31,400 9,700 $41,100 $ 5,700 Tax Effect $12,560 3,880 $16,440 $ 2,280 Difference after Tax $18,840 5,820 $ 24, 660 $ 3,420 Total 2018 Pyramid issued 58,000 $1 par, common shares for $265,000 when the business began, and there have been no changes in paid-in capital since then. Dividends were not paid the first year, but $11,000 cash dividends were paid in both 2017 and 2018. Required: 1. Prepare the journal entry to record the change in accounting principle. 2. Prepare the 2018-2017 comparative income statements beginning with income before income taxes. 3. Prepare the 2018-2017 comparative statements of shareholders' equity. (Hint: The 2016 statements reported retained earnings of $37,680. This is $62,800 [$62,800 x 40%]). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry to record the change in accounting principle. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the change in accounting principle. Prepare the 2018-2017 comparative income statements beginning with income before income taxes. (Round EPS answers to 2 decimal places.) COMPARATIVE INCOME STATEMENTS 2018 2017 Earnings per share Prepare the 2018-2017 comparative statements of shareholders' equity. (Hint: The 2016 statements reported retained earnings of $37,680. This is $62,800 [$62,800 x 40%]). (Negative amounts should be indicated by a minus sign.) PYRAMID COMPANY Statement of Shareholders' Equity For the Years Ended Dec. 31, 2018 and 2017 Additional Common Retained Paid-in Stock Capital Earnings Total Shareholders' Equity Balance at Jan. 1, 2017 Net income Cash dividends Balance at Dec 31, 2017 $ 0 $ 0 $ 0 $ 0 Net income Cash dividends Balance at Dec. 31, 2018 $ 0 $ 0 $ 0 $ 0