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 2016. At December 31, 2015, inventories were $113,000 (average cost basis) and were $117,000 a year earlier. Cecil-Bookers accountants determined that the inventories would have totaled $141,000 at December 31, 2015, and $146,000 at December 31, 2014, if determined on a FIFO basis. A tax rate of 40% is in effect for all years.

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 2016. At December 31, 2015, inventories were $113,000 (average cost basis) and were $117,000 a year earlier. Cecil-Booker's accountants determined that the inventories would have totaled $141,000 at December 31, 2015, and $146,000 at December 31, 2014, 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 $330,000 in 2015 and $455,000 in 2016. There were no discontinued operations either year. Required 1. Prepare the journal entry to record the change in accounting principle. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the change in accounting principle Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal 2. Prepare the 2016-2015 comparative income statements beginning with income from continuing operations. Include per share amounts. (Round EPS answers to 2 decimal places.) COMPARATIVE INCOME STATEMENTS 2016 2015 Earnings per common share