$1.)$ Problem $20-1($Static$)$ Change in inventory costing methods; comparative income statements $[$LO$20-2]$

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 $2024.$ At December $31,2023,$ inventories were $$120,000($average cost basis$)$ and were $$124,000$ a year earlier. Cecil$-$Booker's accountants determined that the inventories would have totaled $$155,000$ at December $31,2023,$ and $$160,000$ at December $31,2022,$ if determined on a FIFO basis. A tax rate of $25\%$ is in effect for all years.

One hundred thousand common shares were outstanding each year. Income from continuing operations was $$400,000$ in $2023$ and $$525,000$ in $2024.$ There were no discontinued operations either year.

Required:

Prepare the journal entry at January $1,2024,$ to record the change in accounting principle. $($All tax effects should be reflected in the deferred tax liability account.$)$

Prepare the $2024-2023$ comparative income statements beginning with income from continuing operations $($adjusted for any revisions$).$ Include per share amounts.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Prepare the $2024-2023$ comparative income statements beginning with income from continuing operations $($adjusted for any revisions$).$ Include per share amounts.

Note: Round EPS answers to $2$ decimal places.

$\backslash$table$[[$COMPARATIVE INCOME STATEMENTS,$],[$Income from continuing operations,,$2024,2023,],[$Income tax expense,,$525,000,$$$,399,000],[$Net income,,$131,250,C,84,750x$

$*$Please help solve$/$fix the red part, correctly and completely! Will upvote if all is correct! Thanks