Wolfgang Kitchens has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2024, Wolfgang decided to change to the LIFO method. Net income in 2024 was correctly stated as $90 million. If the company had used LIFO in 2023, its cost of goods sold would have been higher by $7 million that year. Company accountants are able to determine that the cumulative net income for all years prior to 2023 would have been lower by $23 million if LIFO had been used all along, but have insufficient information to determine specific effects of using LIFO in 2022. Last year, Wolfgang reported the following net income amounts in its comparative income statements:

Required:
1. Prepare the journal entry at the beginning of 2024 to record the change in accounting principle. (Ignore income taxes.)
2. Wolfgang should revise reported account balances retrospectively as of the beginning of what year?
3. What amounts will Wolfgang report for net income in its 2022–2024 comparative income statements?

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($ in millions) Net income 2021 $90 2022 $92 2023 $94