on 16 Problem 3B: Situations of a Change in Accounting Principle On January 1, 2025, Kent Company decided to change from LIFO to FIFO. Kent started the business in 2023. The following analysis was provided by rangesent Ending Inventory Pretax Income Year LIFO FIFO (using LIFO) (using FIFO) 2023 $375,650 $405,900 975,000 1,005,250 2024 $360,450 $410,750 1,350,000 1,370,050 2025 $365,975 $445,775 1,389,500 1,419,000 Kent's tax rate is 20%. The IRS requires the company to pay back the income tax saved from using LIFO for previous years Required: Prepare the journal entry necessary to record the change on 1/1/ 2025, Edit Format Table 12pt v Paragraph ~ | B I U A v Q v TV | | 0 . | Ev Ex EX DEVxProblem 3A: Situations of a Change in Accounting Principle 9 pits Shore Construction began operations in 2023 and appropriately used the completed-contract method in accounting for its long-term construction contracts. They prepared the following information: Completed-Contract Method 2023 2024 Income before income taxes $800,000 $975,000 1,121,250 2025 Effective January 1, 2025, Shore changed to the percentage-of-completion method and can justify the change. The company has a tax rate is 25%, and is allowed to use completed-contract method for tax purpose. It determines the amounts under the percentage of completion method to be: 2024 2025 2023 Percentage-of-Completion Income before income taxes $1,100,000 $1,298,000 $1,431,100 Required: Prepare the journal entries to reflect the change on 1/1/2025. D . Edit Format Table BIUALTY 12pt v Paragraph