Taveras Co$.$ decides at the beginning of $2025$ to adopt the FIFO method of inventory valuation.

Taveras had used the LIFO method for financial reporting since its inception on January $1,2023,$

and had maintained records adequate to apply the FIFO method retrospectively. Taveras

concluded that FIFO is the preferable inventory method because it reports the current cost of

inventory on the balance sheet. The following table presents the effects of the change in

accounting principles on inventory and cost of goods sold.Fistalnad semince reportad under LIFO are ca followe:

Othar informatione:

Tavera provides two years of fingrelal statamants. Eamlnge per share information la rot regalned.

Nst Income under LIFO and FIFO for theyeser $2023,2024\mathrm{.}6\mathrm{.}2025).($c$)$ Prepare the note to the financial statements describing the change in method of inventory

valuation. In the note, indicate the income statement line items for $2025$ and $2024$ that were

affected by the change in accounting principle.