Whaley Distributors is a wholesale distributor of electronic components. Financial statements for the years ended December 31, 2014 and 2015, reported the following amounts and subtotals (S in millions): Shareholders' Assets Liabilities EquityNet Income Expenses $390 400 2014 $700 2015 780 $310 380 $190 210 $146 In 2016 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 2014 inventory Overstated by S 11.6 million 2015 inventory Understated by S 9.6 million b. A liability was accrued in 2014 for a probable payment of $6.2 million in connection with a lawsuit c. A patent costing $15.6 million at the beginning of 2014, expected to benefit operations for a total of six d. Whaley's conveyer equipment was depreciated by the sum-of-the-years'-digits (SYD) basis since it was ultimately settled in December 2016 for $3.6 million years, has not been amortized since acquired acquired at the beginning of 2014 at a cost of $24.0 million. It has an expected useful life of five years and no expected residual value. At the beginning of 2016, Whaley decided to switch to straight-line depreciation. Required For each situation 1. Prepare any journal entry necessary as a direct result of the change or error correction as well as anv adjusting entry for 2016 related to the situation described. (Ignore tax effects.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5)