IGNORE #1 & #2 I am just trying to determine how to do Retained earnings for Dec 31, 2020 & Dec 31 2021!!

I have Jan 1, 2020 correct.

What I have tried for Dec 31 2020 is = 18.8 + (28-7)*.75

Dec 31 2020 = 18.8 + 15.75 = 34.55

I have tried both 34.5 & 34.6 (it automatically rounds to 1 decimal and both are showing as incorrect.

Exercise 20-7 (Algo) Change in principle; Change in inventory cost method [LO20-2] Millington Materials is a leading supplier of building equipment, building products, materials, and timber for sale, with over 200 branches across the Mid-South. On January 1, 2021, management decided to change from the average inventory costing method to the FIFO inventory costing method at each of its outlets. The following table presents information concerning the change. The income tax rate for all years is 25%. Before 2020 2020 2021 Income before Income Tax FIFO Average cost Difference $ 25 million $18 million $ 7 million 28 million 15 million 13 million 20 million 19 million 1 million Required: 1. Prepare the journal entry to record the change in accounting principle. 2. Determine the net income to be reported in the 20212020 comparative income statements. 4. Indicate the affect of the change in the 2021-2020 comparative statements of shareholders' equity assuming cash dividends were $7.00 million each year and that no dividends were paid prior to 2020. Required 1 Required 2 Required 4 Indicate the affect of the change in the 2021-2020 comparative statements of shareholders' equity assuming cash dividends were $7 million each year and that no dividends were paid prior to 2020. (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) MILLINGTON SUPPLIES Statement of Shareholders' Equity For the Years Ended Dec. 31, 2021 and 2020 Additional Total Common Retained Paid-in Stock Shareholders Earnings Capital Equity $ 0 $ 0 $ 18.8$ ($ in millions) Balance at Jan. 1, 2020 0 Balance at Dec. 31, 2020 $ 0 $ 0 >>> $ 34.5 X $ 0 Balance at Dec. 31, 2021 $ 0 $ 0 $ 44.3 X $ 0