Whaley Distributors is a wholesale distributor of electronic components. Financial statements for the years ended December 31, 2019 and 2020, reported the following amounts and subtotals ($ in millions): 2019 2020 Assets $690 770 Liabilities $305 375 Shareholders' Equity $385 395 Net Income $185 205 Expenses $145 170 In 2021, the following situations occurred or came to light: a. Internal auditors discovered that ending inventories reported on the financial statements the two previous years were misstated due to faulty internal controls. The errors were in the following amounts: 2019 inventory Overstated by 2020 inventory $11.5 million Understated by $ 9.5 million b. A liability was accrued in 2019 for a probable payment of $6.0 million in connection with a lawsuit ultimately settled in December 2021 for $3.5 million. c. A patent costing $15.0 million at the beginning of 2019, expected to benefit operations for a total of six years, has not been amortized since acquired. d. Whaley's conveyer equipment was depreciated by the sum-of-the-years'-digits (SYD) basis since it was acquired at the beginning of 2019 at a cost of $22.5 million. It has an expected useful life of five years and no expected residual value. At the beginning of 2021, Whaley decided to switch to straight-line depreciation.