During 2019 (its first year of operations) and 2020, Ajax used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2021, Ajax decided to change to the weighted average method for both financial reporting and tax purposes. Income statements for 2019 and 2020 reported previously were as follows: ($ in millions) 2019 2020 Revenue $380 $390 Cost of goods sold (FIFO) (38) (40) Operating expenses (242) (230) Pre-tax income 100 120 Tax expense (25%) (25) (30) Net income $75 $90 Ajax's cost of goods sold would have been $50 million in 2019 and $56 million in 2020 under the weighted average inventory costing method. Required: 1. In Ajax's 2021 comparative income statement, what will be its reported net income for 2020? 2. Prepare Ajax's journal entry in 2021 to reflect the change in account balances due the change of inventory costing method.