Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2016 decided to change to the FIFO method. The inventory as reported at the end of 2015 using LIFO would have been $18 million higher using FIFO.

Retained earnings reported at the end of 2014 and 2015 was $238 million and $258 million, respectively (reflecting the LIFO method). Those amounts reflecting the FIFO method would have been $248 million and $270 million, respectively. 2015 net income reported at the end of 2015 was $26 million (LIFO method) but would have been $28 million using FIFO. After changing to FIFO, 2016 net income was $34 million. Dividends of $8 million were paid each year. The tax rate is 40%.

Required:

1.	Prepare the journal entry at the beginning of 2016 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).)

2.	In the 20162015 comparative income statements, what will be the amounts of net income reported for 2015 and 2016? (Enter your answers in millions.)

3.	Prepare the 20162015 retained earnings column of the comparative statements of shareholders equity. (Enter your answers in millions.)