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 2018. At December 31, 2017, inventories were $124,000 (average cost basis) and were $128,000 a year earlier. Cecil-Bookers accountants determined that the inventories would have totaled $163,000 at December 31, 2017, and $168,000 at December 31, 2016, 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 $440,000 in 2017 and $565,000 in 2018. There were no discontinued operations either year.

Required: 1. Prepare the journal entry to record the change in accounting principle.

2. Prepare the 20182017 comparative income statements beginning with income from continuing operations. Include per share amounts.