1. Several items related to accounting changes appear below. (10 points) Item a. Reduction in remaining...

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1. Several items related to accounting changes appear below. (10 points) Item a. Reduction in remaining estimated service life of truck. b. Expensed a truck when purchased. c. Write-down of inventory due to obsolescence. d. Receipt of damages won in court suit begun three years ago. e. A company is preparing to become a corporation and sell stock to the public. At this time, it changed from accelerated to straight-line depreciation. f. Change from FIFO inventory to LIFO; recalculations are practicable. g. Increase in bad debt estimate from 2% to 3% of sales. h. Change from LIFO to FIFO. i. Change from individual statements to consolidated statements. Change from percentage-of-sales to percentage-of-receivables method of bad debt estimation. Retrospective Current Adjustment and Prospective XI 1. Several items related to accounting changes appear below. (10 points) Item a. Reduction in remaining estimated service life of truck. b. Expensed a truck when purchased. c. Write-down of inventory due to obsolescence. d. Receipt of damages won in court suit begun three years ago. e. A company is preparing to become a corporation and sell stock to the public. At this time, it changed from accelerated to straight-line depreciation. f. Change from FIFO inventory to LIFO; recalculations are practicable. g. Increase in bad debt estimate from 2% to 3% of sales. h. Change from LIFO to FIFO. i. Change from individual statements to consolidated statements. Change from percentage-of-sales to percentage-of-receivables method of bad debt estimation. Retrospective Current Adjustment and Prospective XI