The Coclin Company has used the LIFO method of accounting for inventory during its first two years of operation, 2022 and 2023. At the beginning of 2024, Coclin decided to change to the average cost method for both tax and financial reporting purposes. The following table presents information concerning the change for 2022-2024. The income tax rate for all years is 25% 2022 2023 Total 2024 Income before Income Tax Using Average Cost Using LIFO Method Method $ 85,800 41,500 $ 57,200 33,200 $ 127,300 $ 90,400 $ 49,600 $ 45,300 Difference $ 28,600 8,300 $36,900 $4,300 Income Tax Effect $ 7,150 2,075 $9,225 $1,075 Difference after Tax $ 21,450 6,225 $ 27,675 $3,225 Coclin issued 42,000 $1 par, common shares for $195,000 when the business began, and there have been no changes in paid-in capital since then. Dividends were not paid the first year, but $12,000 cash dividends were paid in both 2023 and 2024 Required: 1. Prepare the journal entry at January 1, 2024, to record the change in accounting principle. 2. Prepare the 2024-2023 comparative income statements beginning with income before income taxes. 3. Prepare the 2024-2023 comparative statements of shareholders equity. [Hint: The 2022 statements reported retained earnings of $42,900 This is $57,200-($57,200 25%)