During 2022 (its first year of operations) and 2023, Fieri Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2024, Fieri decided to change to the average method for both financial reporting and tax purposes.

Income components before income tax for 2022, 2023, and 2024 were as follows:

($ in millions)	2022	2023	2024
Revenues	$ 450	$ 460	$ 490
Cost of goods sold (FIFO)	(45)	(47)	(53)
Cost of goods sold (average)	(66)	(70)	(76)
Operating expenses	(270)	(278)	(282)

Dividends of $26 million were paid each year. Fieris fiscal year ends December 31.

Required:

1. Prepare the journal entry at the beginning of 2024 to record the change in accounting principle. (Ignore income taxes.)

2. Prepare the 20242023 comparative income statements.

3. & 4. Determine the balance in retained earnings at January 1, 2023, as Fieri reported using FIFO method and determine the adjustment of balance in retained earnings as on January 1, 2023 using average method instead of FIFO method.

For financial reporting, Kumas Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2021 for $2,816,000. Its useful life was estimated to be six years with a $224,000 residual value. At the beginning of 2024, Kumas decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:

Year	($ in thousands)
	Straight-Line	Declining Balance	Difference
2021	$ 432	$ 938	$ 506
2022	432	626	194
2023	432	417	(15)
	$ 1,296	$ 1,981	$ 685

Required:

2. Prepare any 2024 journal entry related to the change.

Note: Enter you answers rounded to the nearest dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)