Stellar Company began operations on January 1, 2015, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2018. The following information is available for the years 20152017.

NET INCOME	COMPUTED	USING
	AVERAGE COST METHOD	FIFO METHOD	LIFO METHOD
2015	$16000	$19100	$12080
2016	18040	20820	14100
2017	20010	24800	16840

(a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2018. (Credit account titles are automatically indented when 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.)

Accounts Titles and Explanations	Debit	Credit

(b) Determine net income to be reported for 2015, 2016, and 2017, after giving effect to the change in accounting principle.

	Net Income
2015	$
2016	$
2017	$

(c) Assume Stellar Company used the LIFO method instead of the average cost method during the years 20152017. In 2018, Stellar changed to the FIFO method. Prepare the journal entry necessary to record the change in principle. (Credit account titles are automatically indented when 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.)

Account Titles and Explanations	Debit	Credit