Machino,Inc.began operations on January 1,2014.During 2016,management decided to change from average-cost method to FIFO for its merchandise inventories.The change was effective at January 1,2016.Management determined that cost of goods sold for each method would be:
The company's statements as reported under average-cost before implementing the accounting change for 2016,2015,and 2014,respectively,are presented below.The income tax rate for Machino is 40%.
Required:

Question

Machino,Inc.began operations on January 1,2014.During 2016,management decided to change from average-cost method to FIFO for its merchandise inventories.The change was effective at January 1,2016.Management determined that cost of goods sold for each method would be:
  The company's statements as reported under average-cost before implementing the accounting change for 2016,2015,and 2014,respectively,are presented below.The income tax rate for Machino is 40%.
   Required: