The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2013. At December 31, 2012, inventories were $119,000 (average cost basis) and were $123,000 a year earlier. Cecil-Booker's accountants determined that the inventories would have totaled $153,000 at December 31, 2012, and $158,000 at December 31, 2011, if determined on a FIFO basis. A tax rate of 40% is in effect for all years. One hundred thousand common shares were outstanding each year. Income from continuing operations was $390,000 in 2012 and $515,000 in 2013. There were no extraordinary items either year