3 Smith Ironworks converted from the LIFO method of inventory to the FIFO method of inventory on January 1, 2021. Based on computations the December 31, 2020 ending inventory under FIFO would have been $250,000. The year end 2020 financial statements showed ending inventory at $175,000 under the LIFO method. Described below are five independent and unrelated situations involving accounting changes. Assume for each situation that it is 2021 . Therefore, your solution and any entries will be prepared for 2021. Also assume that it is before any adjusting entries or closing entries were made in 2021. gnore income tax effects. REQUIRED: For each situation below: A Identify the type of change. B Identify if a Retrospective, Modified Retrospective, or Prospective is needed. C Prepare the 2021 journal entry necessary due to the situation, as well as any adjusting entry needed in 2021