Required:

Prepare the journal entry at January $1,2024,$ to record the change in accounting principle.

Prepare the $20242023$ comparative income statements beginning with income before income taxes.

Prepare the $20242023$ comparative statements of shareholders$$ equity. $[$Hint: The $2022$ statements reported retained earnings of $$45,000.$ This is $$60,000($$$60,000\backslash$times $25\%).]$