1. identify the type of change 2. prepare the journal entries necessary as a direct result of the change as well as any djusting entries for 2018.

Award: 4.50 points any adjusting entries or closing entries were be adjusted through the deferred tax liability account. prepared. Assume the tax rate for each company is 40% in all years. Any tax effects should g accounting changes. Each chang e occurs during 2018 before a. Fleming Home Products introduced a new line of commercial awnings in 2017 that carry a one-year warranty against manufacturer's defects. Based on industry experience, warranty costs were expected to a $2,700,000. Accordingly, warranty expense and a warranty liability of $81,000 were recorded i claims experience was evaluated and it was determined that claims were far fewer than expected; of the awnings in 2018 were $3,200,000, and warranty expenditures in 2018 totaled $72.800 pproximate 3% of sales. Sales of the awn ngs w 2017. In late 2018, the company's 2% of sales rather than 3%. Sales b. On December 30, 2014, Rival Industries acquired its office building at a cost of $840,000. It was deprec c. Hobbs-Barto Merchandising. Inc. changed inventory cost methods to d. At the beginning of 2015, Hoffman assuming a useful life of 40 years and no salvage value. However, plans were fina headquarters at the end of 2022. The vacated office building will have a salvage value ted on a straight-line basis in 2018 to relocate the company at that time of $620,000 finalized i n., changed inventory cost methods to LIFO from FIFO at the end of 2018 for both financial statement 5, the Hoffman Group purchased office equioment at a cost of $242,000. Its useful life was estimated to be 10 and income tax purposes. U he inventory at January 1, 2018, is $610,000 company changed to the straight-line method o salvage value. The equipment was depreciated by the sum-of-the-years'-digits method. On January 1, 2018, the e, In November 2016, the State of Minnesota filed suit against Huggins Manufacturing Company, seeking penalties for violations of clean air laws. When the financial statements were issued in 2017, Huggins had not reached a settlement with state autr legal counsel advised Huggins that it was probable the alties Accordingly, the following company would have to payS entry was recorded: Loss-litigation 120,000 Liability-litigation f $262,000 in penalties Late in 2018, a settlement was reached with state authorities to pay a total o t the beginning of 2018, Jantzen Specialties, which uses the sum-of-the-years' -digits method, changed to the straight-line method for newly acquired buildings and equipment. The change increased current year net earnings by $357,000. Required: For each situation 1. Identify the type of change. 2. Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described Complete this question by entering your answers in the tabs below. Required 1 Required 2 Identify the type of change Type of change Event a. b. C. d. e