Merchant Inc. has historically used FIFO. In year 4( beginning of the year) the company decided to switch to LIFO. The change caused net income in year 4 to be $ 86 million. If the company had used LIFO in year 3 the cost of goods sold would have been higher by $10 million that year. The company did not keep accurate and professional records for the first two years of its existence. Last year the company reported the following net income in its comparative income statements. $ millions net income year 1 $ 110 year 2 101 year3 98 a. prepare the journal entry at the beginning year 4 to record the change in accounting principle. b. Are changes in accounting principle applied prospectively or retrospectively? C. What amounts will the company report for the net income in its year 2 to 4 comparative income statements?