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Help Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2018 decided to change to the FIFO method. The

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Help Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2018 decided to change to the FIFO method. The inventory as reported at the end of 2017 using LIFO would have been $29 million higher using FIFO. Retained earnings reported at the end of 2016 and 2017 was $249 million and $269 million, respectively (reflecting the LIFO method). Those amounts reflecting the FIFO method would have been $259 million and $281 million, respectively, 2017 net income reported at the end of 2017 was $37 million (LIFO method) but would have been $39 milion using FIFO. After changing to FIFO, 2018 net income was $45 milion. Dividends of $8 million were paid each year. The tax rate is 40% Required: 1. Prepare the Journal entry at the beginning of 2018 to record the change in accounting principle. 2. In the 2018-2017 comparative income statements, what will be the amounts of net income reported for 2017 and 2018? 3. Prepare the 2018-2017 retained earnings column of the comparative statements of shareholders' equity. Complete this question by entering your answers in the tabs below. to record the change in accounting principle. (If no entry is required for a transaction/event, select "No joumal entry required in the first account field. Enter your answers in millions rounded to 1 decimal (I.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 1 Record the change in accounting principle. Note: Enter debits before credits Event General Journal 1 Debit Credit Paco Vio Required 1 Required 2 Required 3 In the 2018-2017 comparative income statements, what will be the amounts of net income reported for 2017 and 2018 (Enter your answers in millions.) 2017 (5 in millions) 2018 Net income FANTASY FASHIONS Statement of Shareholders' Equity For the Years Ended Dec 31, 2018 and 2017 Common Stock Additional Pald-in Capital Retained Earnings Total Shareholders' Equity (5 in millions) Balance at Jan. 1, 2017 Net income Cash dividends Balance at Dec 31, 2017 Net income Cash dividends Balance at Dec 31, 2018

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