The Pyramid Company has used the LIFO method of accounting for inventory during its first two years of operation 2016 and 2017. At the beginning of 2018, 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 2016-2018. The income tax rate for all years is 40% Income before Income Tax Income Difference Average cost Method LIPO Method Difference Tax Effect after Tax 2016 $ 88,800 $59,200 $29,600 $11,840 $17,760 2017 44,000 35,200 8,800 3.520 5,280 Total $132,800 $94,400 $38,400 $15,360 $23,040 2018 $ 50,600 $45,800 $ 4,800 $ 1,920 $ 2,80 Pyramid issued 48,000 $1 par, common shares for $220,000 when the business began, and there have been no changes in paid in capital since then. Dividends were not paid the first year, but $10,000 cash dividends were paid in both 2017 and 2018 es Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the 2018-2017 comparative statements of shareholders' equity. (Hint: The 2016 statements re earnings of $35,520. This is $59,200 - [$59,200 x 40%]). (Negative amounts should be indicated by a PYRAMID COMPANY Statement of Shareholders' Equity For the Years Ended Dec. 31, 2018 and 2017 Additional Common Retained Paid-in Stock Earnings Capital S 48,000 $ 172,000 Total Shareholders' Equity 0 0 0 0 Balance at Jan. 1, 2017 Net income Cash dividends Balance at Dec 31, 2017 Net income Cash dividends Balance at Dec. 31, 2018 $ 172,000 $ $ 0 48,000 0 $ 0 $ 48,000 $ (10,000) (10,000) (10,000) $ (10,000) 30,360 30,360 (10,000) (10,000) 10,360 10,360 $ 0 $ 172,000 $