Pearl Corporation began operations on January 1, 2017. For the first year of its operations, the companys controller (who had taken only one introductory accounting course) used the LIFO method of costing inventories. At the end of the companys second year (i.e., December 31, 2018), the company decided to have its financial statements audited, during which the external auditor informed Pearl that LIFO was not an allowable accounting policy choice in Canada. As a result, Pearl changed from LIFO to FIFO at the end of 2018. Following is information regarding the inventory balances at the end of 2017 and 2018:

Year		FIFO			LIFO
2017		$153,200			$145,000
2018		281,400			265,000

Prepare the necessary journal entry to record the correction of the accounting error. Assume that year-end adjusting entries have been made, but the 2018 books have not yet been closed. Assume an income tax rate of 20%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)