During 2014 (its first year of operations) and 2015, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2016, Batali decided to change to the average method for both financial reporting and tax purposes.

Income components before income tax for 2016, 2015, and 2014 were as follows ($ in millions):

	2016			2015			2014
Revenues	$	460		$	430		$	420
Cost of goods sold (FIFO)		(50	)		(44	)		(42	)
Cost of goods sold (average)		(70	)		(64	)		(60	)
Operating expenses		(270	)		(266	)		(258	)

Dividends of $23 million were paid each year. Batalis fiscal year ends December 31.

Required:

1.	Prepare the journal entry at the beginning of 2016 to record the change in accounting principle. (Ignore income taxes.) (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).)

2.	Prepare the 20162015 comparative income statements. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

3. & 4.	Determine the balance in RE at january 2015 as batali reported using FIFO method and adjustment of balance in RE as on january 2015 using average menthod instead of FIFO method. (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)