Flay Foods has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2021, Flay decided to change to the LIFO method. As a result of the change, net income in 2021 was $73 million. If the company had used LIFO in 2020, its cost of goods sold would have been higher by $7 million that year. Flays records of inventory purchases and sales are not available for 2019 and several previous years. Last year, Flay reported the following net income amounts in its comparative income statements:

($ in millions) 2018 2019 2020

Net income $73 $75 $77

Required:

1. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle. (Ignore income taxes.)

Prepare the journal entry at the beginning of 2021 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).)

3. What amounts will Flay report for net income in its 20192021 comparative income statements?

What amounts will Flay report for net income in its 20192021 comparative income statements? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)