Question 3:(8 marks) Below is the pretax net income of XYZ Sports Co., computed under the two inventory methods. XYZ began operations in 2012 and adopted FIFO inventory valuation. In 2015, XYZ changed its valuation method to Average-Cost. The pretax income data is reported below 2012 2013 2014 2015 FIFO 26,000 30,000 29,000 34,000 Average-Cost 23,000 25,000 27,000 30.000 Instructions: a. What is XYZ's net income in 2015? Assume a 35% tax rate in all years. b. Compute the cumulative effect of the change in accounting principle from FIFO to Average Cost method. c. Show comparative income statements for XYZ's Company, beginning with income before income tax, as presented on the 2015 income statement