1. Change in Accounting Principle On 1/1/2015, Maxwell Corporation changed its method of inventory pricing from LIFO to FIFO. Net income computed on a LIFO as compared to a FIFO basis for the four years involved is: (Ignore income taxes.) Instructions: a. Indicate the net income that would be shown on comparative financial statements issued at 12/31/2015 for each of the four years, assuming that the company changed to the FIFO method in 2015. b. Prepare the Journal Entry showing the retrospective application of the new accounting principle at 1/1/2015. 2. Changes in Depreciation Methods and Estimates On January 1, 2013, Sauder Company purchased a building and machinery that have the following useful lives, salvage value, and costs. Building, 25-year estimated useful life, $4,000,000 cost, $400,000 salvage value Machinery, 10-year estimated useful life, $500,000 cost, no salvage value The building has been depreciated under the double-declining balance method through 2017. In 2018, the company decided to switch to the straight line method of depreciation for the building. The depreciation expenses under double-declining balance totaled 750,000 for the 2013 to 2017 period. Sauder also decided to change the total useful life of the machinery to 8 years, with a salvage value of $25,000 at the end of that time. The machinery is depreciated using the straight-line method. Instructions (a) Prepare the journal entry necessary to record the depreciation expense on the building in 2018. (b) Compute depreciation expense on the machinery for 2018