Q2. The table below reports inventories for Bonnair under FIFO and LIFO inventory costing methods. The table also reports Nl under LIFO. Bonnair, which has used LIFO since its inception in 2017, has decided to switch to FIFO effective on 1/1/2021. The books are open for 2021. Inventories on 12/31 FIFO L IFONI (LIFO) 2017 15,000 12,500 80,000 2018 20,000 14,000 100,000 2019 25,000 21,000 112,000 2020 30,500 24,000 168,000 2021 34,000 26,000 192,000 (1) Make the journal entry for the switch from LIFO to FIFO (2) Show the change in net income by year resulting from the switch to FIFO. A negative value will indicate lower Nl under FIFO. Show calculations for each change. Change in NI Calculations Year *2018 *2019 *2020 *2021 (3) Show the net income as reported in the 2020 financial statements and as reported in the 2021 financial statements. 2021 2020 2019 2018 Net income Reported in 2020 Reported in 2021 (4) Show how Retained Earnings would be reported in the 2021 financial statements assuming comparative statements for 2021 and 2020 only. 2021 2020 672,000 RE previously reported, January 01 Change in acctg principle RE, 1/1 as restated Net Income Dividends declared and paid (76,800) (67,200) RE, 12/31