E21.8 (LO 1, 2, 3) (Accounting for Accounting Changes and Errors) Listed below are various types of accounting changes and errors.

1. Change from FIFO to average-cost inventory method.

2. Change due to overstatement of inventory.

3. Change from an accelerated to straight-line method of depreciation.

4. Change from average-cost to FIFO inventory method.

5. Change in the rate used to compute warranty costs.

6. Change from an unacceptable accounting policy to an acceptable accounting policy.

7. Change in a patent’s amortization period.

8. Change from cost-recovery to percentage-of-completion method on construction contracts.

9. Change in a plant asset’s residual value.

Instructions For each change or error, indicate how it would be accounted for using the following code letters.

a. Accounted for prospectively.

b. Accounted for retrospectively.

c. Neither of the above.