The Pyramid Company has used the LIFO method of accounting for inventory during its first two years of operation, 2019 and 2020 . At the beginning of 2021, Pyramid decided to change to the average cost method for both tax and financial reporting purposes. The following table presents information concerning the change for 2019-2021. The income tax rate for all years is 25\%. Pyramid issued 50,000$1 par, common shares for $230,000 when the business began, and there have been no changes in paid-ln capital since then. Dlvidends were not paid the first year, but $10,000 cash dividends were paid in both 2020 and 2021 , Required: 1. Prepare the journal entry at January 1, 2021, to record the change in accounting principle. 2. Prepare the 2021-2020 comparative income statements beginning with income before income taxes. 3. Prepare the 2021-2020 comparative statements of sharehoiders' equity. [Hint. The 2019 statements reported retained earnings of $45,000. This is $60,000($60,00025%)]