< Back This window shows your responses and what was marked correct and incorrect from your previous attempt. 7 4.5/10 points awarded Scored Millington Materials is a leading supplier of building equipment, building products, materials, and timber for sale, with over 200 branches across the Mid-South. On January 1, 2021, 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 25%. Income before Income Tax Average Cost $21 million Difference $7 million FIFO Before 2020 2020 $ 28 million 34 million 18 million 2021 23 million 22 million 16 million 1 million. Required: 1. Prepare the journal entry to record the change in accounting principle. 2. Determine the net income to be reported in the 2021-2020 comparative income statements. 4. Indicate the affect of the change in the 2021-2020 comparative statements of shareholders' equity assuming cash dividends were $8.50 million each year and that no dividends were paid prior to 2020. Complete this question by entering your answers in the tabs below. Require Required 2 Required 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).) No Event General Journal 1 1 Inventory Income tax payable Retained earnings Required 1 Debit Credit 23.0 5.8 17.2 Required 2> *Red text indicates no response was expected in a cat or a formula-based calculation is incorrect; no points deducted