2 Millington Materials is a leading supplier of building equipment, building products, materials & timber for sale, with over 200 branches across the Mid-South. On January 1, 2018, management decided to change from the average inventory costing method to the FIFO inventory costing method at each of its outlets. The following table presents information concerning the change. The income tax rate for all years is 40%. 0.5 points eBook Income before Income Tax Average FIFO Cost Difference Before 29 million $ 22 million $ 7 million 2017 2017 36 million 19 million 17 million 2018 24 million 23 million 1 million Print References Required: 1. Prepare the journal entry to record the change in accounting principle. 2. Determine the net income to be reported in the 2018-2017 comparative income statements. 4. Indicate the affect of the change in the 2018-2017 comparative statements of shareholders' equity. Cash dividends were $3.36 million each year. Assume no dividends were paid prior to 2017. Complete this question by entering your answers in the tabs below. Required Required Required 2 4 Prepare the journal entry to record the change in accounting principle. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Show less View transaction list Journal entry worksheet 1 Record the change in accounting principle. Note: Enter debits before credits. General Journal Debit Credit Event 1 Record entry Clear entry View general Journal Complete this question by entering your answers in the tabs below. Required Required Required 1 2 4 Determine the net income to be reported in the 2018-2017 comparative income statements. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Show less 2018 2017 ($ in millions) Net Income were $3.36 million each year. Assume no dividends were paid prior to 20 Complete this question by entering your answers in the tabs below. Required Required Required 2 1 4 Indicate the affect of the change in the 2018-2017 comparative statements of shareholders' equity. Cash dividends were $3.36 million each year. Assume no dividends were paid prior to 2017. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Show less MILLINGTON SUPPLIES Statement of Shareholders' Equity For the Years Ended Dec. 31, 2018 and 2017 Additional Total Common Retained Paid-in Shareholders' Stock Capital Earnings Equity ($ in millions) Balance at Jan. 1, 2017 Balance at Dec. 31, 2017 Balance at Dec. 31, 2018