In keeping with a modernization of corporate statutes in its home state, UMC Corporation decided in 2024 to discontinue accounting for reacquired shares as treasury stock. Instead, shares repurchased will be viewed as having been retired, reassuming the status of unissued shares. As part of the change, treasury shares held were reclassified as retired stock. At December 31, 2023, UMCs balance sheet reported the following shareholders equity:

($ in millions)Common stock, $1 par$ 275Paid-in capitalexcess of par1,100Retained earnings1,106Treasury stock (5.5 million shares at cost)(100)Total shareholders equity$ 2,381

Required:

Identify the type of accounting change this decision represents and prepare the journal entry to effect the reclassification of treasury shares as retired shares.

Required: Identify the type of accounting change this decision represents and prepare the journal entry to effect the reclassification of treast shares as retired shares. Complete this question by entering your answers in the tabs below. Identify the type of accounting change this decision represents. Identify the type of accounting change this decision represents Change in accounting principle Complete this question by entering your answers in the tabs below. Prepare the journal entry to effect the reclassification of treasury shares as retired shares. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 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)