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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

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-Lis balance sheet reported the following shareholders equity: ($ in millions) Common stock, $1 par $ 210 Paid-in capitalexcess of par 840 Retained earnings 1,008 Treasury stock (3 million shares at cost) (23) Total shareholders equity $ 2,035 Required: Identify the type of accounting change this decision represents. Prepare the journal entry to effect the reclassification of treasury shares as retired shares.

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