2. Please treat each of the following situations independently for Kerr, Co. in 2019. Assume that Kerr has a 30% tax rate. For each of the items below, prepare ALL necessary journal entries for 2019 related to the information. If no journal entry is required, write No Entry Required.

a. On January 2, 2017, Kerr bought equipment for $86,000. The equipment is expected to have a useful life of 7 years and a salvage value of $2000. Kerr used the SUM-OF-THE-YEARS digits method of depreciation in 2017 and 2018, but decided to switch to STRAIGHT-LINE depreciation in 2019.

b. On January 2, 2015, Kerr bought equipment for $160,000. The equipment is expected to last 16 years with no salvage value. Kerr uses the STRAIGHT-LINE method of depreciation. In 2019, Kerr determines that the useful life of the equipment should be 12 years rather than 16 years.

c. During 2019, Kerr decided to switch from the LIFO method of valuing inventory to FIFO. If FIFO had been used by Kerr prior to 2019, income would have been $73,000 higher than it was under LIFO.

(Please show your work)