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' Net Assets Liabilities Equity Income Expenses S360 370 Liabilties Equity Income 2014 $640 $280 2015 720 $160 180 $140 165 350 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 S11.0 million 2015 inventory Understated by $ 9.0 million b. A liability was accrued in 2014 for a probable payment of $5.0 million in connection with a lawsuit c. A patent costing $12.0 million at the beginning of 2014, expected to benefit operations for a total of six ultimately settled in December 2016 for $3.0 million s, has not been amortized since acquired Whaley's conveyer equipment was acquired at the beginning of 2014 at a cost of $15 0 milion It has an expected useful life of five years and no expected residual value. At the beginning of 2016, Whaley decided to switch to depreciation d Whaley's conveyer equipment was depreciated by the sum-of the-years'-digts (SYD) basis since it was d. straight-line Required: For each situation. 1. Prepare any journal entry necessary as a direct result of the change or error correction as well as any adjusting entry for 2016 related to the situation described (lgnore 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)) View transaction list Journal entry worksheet Record entry necessary as a direct result of the change or error correction. Note: Enter debits before credits. Transaction Debit