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Wolfgang Kitchens has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Wolfgang decided to change to the LIFO method. Net income in 2018 was correctly stated as $102 million. If the company had used LIFO in 2017, its cost of goods sold would have been higher by $13 million that year. Company accountants are able to determine that the cumulative net income for all years prior to 2017 would have been lower by $29 million if LIFO had been used all along, but have insufficient information to determine specific effects of using LIFO in 2016. Last year, Wolfgang reported the following net income amounts in its comparative income statements: ($ in millions) 2017 2016 2015 Net income $106 $104 $102 Prepare the journal entry at the beginning of 2018 to record the change in accounting principle. (Ignore income taxes.) (If n required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions ( 10,000,000 should be entered as 10).) View transaction list View journal entry worksheet No Event General Journal Debit Credit Retained earnings 1 Inventory What amounts will Wolfgang report for net income in its 2018-2016 comparative income statements? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) 2018 2017 2016 (S in millions) Net income LIFO (revised) LIFO FIFO For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2015 for $2,592,000. Its useful life was estimated to be six years with a $168,000 residual value. At the beginning of 2018, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows ($ in 000s): Straight-Line Declining Balance Difference Year 2015 S 404 S 864 $460 2016 404 576 172 404 384 (20) 2017 $1,212 $1,824 $612 Required: 2. Prepare any 2018 journal entry related to the change. (Enter your answers in dollars rounded to the nearest thousand. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Event General Journal Debit Credit Depreciation expense Accumulated depreciation