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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

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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% Income before Income Tax TITO Average cost Difference Before 2020 $ 33 million $26 million (7 million 2020 44 million 23 million 21 million 2021 20 million 27 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 2021-2020 comparative income statements 4. Indicate the affect of the change in the 2021-2020 comparative statements of shareholders' equity assuming cash dividends were $11.00 million each year and that no dividends were paid prior to 2020 View transaction list Journal entry worksheet Record the change in accounting principle. Water brecrets Event General Journal Debit Credit Record entry Clear entry View era uma Required: 1. Prepare the journal entry to record the change in accounting principle. 2. Determine the net income to be reported in the 2021-2020 comparative Income statements. 4. Indicate the affect of the change in the 2021-2020 comparative statements of shareholders' equity assuming cash dividends were $11.00 million each year and that no dividends were paid prior to 2020. points ok Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Determine the net income to be reported in the 2021-2020 comparative Income statements. (Do not round Intermediate calculations. Enter your answers in millions rounded to 1 decimal place (., 5,500,000 should be entered as 5.5).) 2020 Sinona) Required: 1. Prepare the journal entry to record the change in accounting principle. 2. Determine the net income to be reported in the 2021-2020 comparative income statements 4. Indicate the affect of the change in the 2021-2020 comparative statements of shareholders' equity assuming cash dividends were $1100 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 dividend's were $11 million each year and that no dividends were paid prior to 2020. (Do not round intermediate calculations. Enter your answers in millons rounded to 1 decimal place (.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 Sin millions) Common Stock Additional Paldin Capital Retained Earnings Total Shareholders Equity Balance at Jan 1, 2020 Balance Dec 31, 2020 Balance at Dec 31, 2021

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