In keeping with a modernization of corporate statutes in its home state, Miller$-$Li 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 $31,2023,$ Miller$-$

Li's balance sheet reported the following shareholders' equity:

Required:

a$.$ Identify the type of accounting change this decision represents.

b$.$ Prepare the journal entry to effect the reclassification of treasury shares as retired shares.