Evaluate each of the following independent situations to determine the type of accounting change (correction of error, change in accounting policy, or change in estimate) and the appropriate accounting treatment (retrospective or prospective). 

a. A company changes from the net method to the gross method of recording cash discounts offered for early payment of accounts receivable. 

b. A company changes from the cost model to the revaluation model to subsequently measure the value of its real estate holdings. 

c. An electronics company is no longer the industry leader in product development. It determines that the value of its goodwill has decreased from $1,500,000 to $900,000. d. A franchisor sells a five-year franchise agreement to a franchisee for $200,000. It recognized revenue for this amount at the time of sale. Terms of the franchise agreement require the franchisor to provide operational support over the life of the franchisee. 

e. A company previously paid $5 million for a trademark that was expected to substantively contribute to its income stream for the foreseeable future. The company now values the trademark at only $500,000 due to negative media coverage highlighting the company’s employment of children in third world countries.