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 $840 920 Liabilities $380 450 Shareholders' Equity $460 470 Net Income $260 280 Expenses $160 185 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 2020 inventory Overstated by Understated by $13.0 million $11.0 million b. A liability was accrued in 2019 for a probable payment of $9.0 million in connection with a lawsuit ultimately settled in December 2021 for $5.0 million. c. A patent costing $24.0 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 $45.0 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. 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 2021 related to the situation described. (Ignore tax effects.) 2. Determine the amounts to be reported for each of the five items shown above from the 2019 and 2020 financial statements when those amounts are reported again in the 2019-2021 comparative financial statements. Required 1 Required 2 Determine the amounts to be reported for each of the five items shown above from the 2019 and 2020 financial statements when those amounts are reported again in the 2019-2021 comparative financial statements. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions. Round "Inventory" and "Patent amortization" to 1 decimal place.) Show less Assets Liabilities Shareholders' Equity Net Income Expenses 2019 2019 inventory Loss contingency Patent amortization Depreciation es $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 2020 2019 inventory 2020 inventory Loss contingency Patent amortization Depreciation 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0