The Pyramid Company has used the LIFO method of accounting for inventory during its first two years of operation, 2014 and 2015. At the beginning of 2016, Pyramid decided to change to the average cost method for both tax and financial reporting purposes. The following table presents information concerning 2014-2016. The income tax rate for all years is 40%. Income before Income Tax Average Cost Income Method LIFO Method Difference Tax Effect after Tax 2014 85,200 56,800 11,360 28,400 17040 2015 41.000 8.200 4.920 126.200 S 89,600 $36,600 $21,960 14,640 2016 49,400 45,200 S 4.200 1,680 S 2.520 Pyramid issued 40,000 $1 par, common shares for $190.000 when the business began, and there have been no changes in paid-n capital since then. Dividends were not paid the first year, but S10.000 cash dividends were paid in both 2015 and 2016. 1. Prepare the journal entry to record the change in accounting (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) view general journal view transaction st Journal Entry Worksheet Record the change in accounting principle. Event General Journal Debit Credit "Enter debits before credits clear entry