Prepare the necessary journal entries in each of the following independent situations to record the described accounting changes or correct the described errors.

B. In 2019, Maxwell Corporation changed its method of inventory pricing from LIFO to FIFO. Net income computed on a LIFO basis, as compared to a FIFO basis, for the years Maxwell has been in business is shown below. (Ignore income taxes.)

LIFO FIFO

2016 $40,000 $52,000

2017 $42,000 $60,900

2018 $48,500 $56,000