Wolfgang Kitchens has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of $2024,$ Wolfgang decided to change to the LIFO method. Net income in $2024$ was correctly stated as $$122$ million. If the company had used LIFO in $2023,$ its cost of goods sold would have been higher by $$12$ million that year. Company accountants are able to determine that the cumulative net income for all years prior to $2023$ would have been lower by $$39$ million if LIFO had been used all along, but have insufficient information to determine specific effects of using LIFO in $2022.$ Last year, Wolfgang reported the following net income amounts in its comparative income statements:

$($$ in millions$)202120222023$

Net income $ $122$ $ $124$ $ $126$

Required:

$1.$ Prepare the journal entry at the beginning of $2024$ to record the change in accounting principle. $($Ignore income taxes.$)$

$3.$ What amounts will Wolfgang report for net income in its $20222024$ comparative income statements?

NET INCOME

$2022($FIFO$)$

$2023($LIFE$-$ REVISED$)$

$2024($LIFO$)$