Flay Foods has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2016, Flay decided to change to the LIFO method. As a result of the change, net income in 2016 was $74 million. If the company had used LIFO in 2015, 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 2014 and several previous years. Last year, Flay reported the following net income amounts in its comparative income statements:

($ in millions)	2015	2014	2013
Net income	$78	$76	$74

Required:

1. Prepare the journal entry at the beginning of 2016 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).) Record the change in accounting principle.

3. What amounts will Flay report for net income in its 20162014 comparative income statements? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

	2016	2015	2014
		($ in millions)
Net income
	LIFO	LIFO - reversed	FIFO