Flay Foods has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Flay decided to change to the LIFO method. As a result of the change, net income in 2018 was $77 million. If the company had used LIFO in 2017, its cost of goods sold would have been higher by $6 million that year. Flays records of inventory purchases and sales are not available for 2016 and several previous years. Last year, Flay reported the following net income amounts in its comparative income statements: ($ in millions) 2017 2016 2015 Net income $ 81 $ 79 $ 77

Required: 1. Prepare the journal entry at the beginning of 2018 to record the change in accounting principle. (Ignore income taxes.)

3. What amounts will Flay report for net income in its 20182016 comparative income statements?