A company has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of Year 24, a company decided to change to the LIFO method. As a result of the change, net income in Year 24 was $76 million. If the company had used LIFO in Year 23, its cost of goods sold would have been higher by $7 million that year. The company's records of inventory purchases and sales are not available for Year 22 and several previous years. Last year, the company reported the following net income amounts in its comparative income statements: ($ in millions) Net income Year 21 $ 76 Year 22 $ 78 Year 23 $ 80 Required: 1. Prepare the journal entry at the beginning of Year 24 to record the change in accounting principle. (Ignore income taxes.) 3. What amounts will the company report for net income in its Years 22-24 comparative income statements? Complete this question by entering your answers in the tabs below. Required 1 Required 3 Prepare the journal entry at the beginning of Year 24 to record the change in accounting principle. (Ignore income taxes.) Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet 1 Record the change in accounting principle. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal A company has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of Year 24, a company decided to change to the LIFO method. As a result of the change, net income in Year 24 was $76 million. If the company had used LIFO in Year 23, its cost of goods sold would have been higher by $7 million that year. The company's records of nventory purchases and sales are not available for Year 22 and several previous years. Last year, the company reported the following net income amounts in its comparative income statements: ($ in millions) Net income Year 21 $ 76 Year 22 $ 78 Year 23 $ 80 Required: 1. Prepare the journal entry at the beginning of Year 24 to record the change in accounting principle. (Ignore income taxes.) 3. What amounts will the company report for net income in its Years 22-24 comparative income statements? Complete this question by entering your answers in the tabs below. Required 1 Required 3 What amounts will the company report for net income in its Years 22-24 comparative income statements? Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Year 23 Year 24 Year 22 ($ in millions) Net income FIFO LIFO (revised)