68) Butler Products decided to change inventory methods on January 1, 2020 to more effectively report its results of operations. In the past, management has measured its ending inventories by the average cost method and they now believe that FIFO is a better representation of its financial position and profitability. Butler's tax rate is 35% for all years. Year Ended December 31, 2018 December 31, 2019 December 31, 2020 FIFO Inventory $264,000 395,000 240,000 Average-Cost Inventory 205,000 345,000 190,000 Which one of the following journal entries correctly records the change in the accounting principle? A) No entry needed. B) Retained Earnings Deferred Tax Asset Inventory 32,500 17,500 50,000 50,000 Inventory Deferred Tax Liability Retained Earnings 17,500 32,500 D) Deferred Tax Asset Retained Earnings Inventory 32,500 17,500 50,000 73) Jett Company purchased an umbrella liability policy in January, 2017 and paid a five year premium for $400,000. It was recorded as Insurance Expense. The error was discovered late in 2017 when the accountants were reconciling 2017 for adjusting entries. What is the proper entry to correct the error at December 31, 2017? (Ignore income taxes.) A) No entry required because it will self correct in two more years. 3) Prepaid Insurance Insurance Expense (2017) Retained Earnings 160,000 80,000 240,000 C) Prepaid Insurance Insurance Expense 320,000 320,000 D) Prepaid Insurance Insurance Expense (2017) Retained Earnings 240,000 80,000 320,000 75) Apple Plumbing reports actual returns on plan assets of $200,000, while the expected return was $181,000. In addition, an employee wellness program has resulted in changes in actuarial assumptions that result in an increase in the PBO of $24,000. What is the journal entry to record the change in actuarial assumptions? A) OCI - Actuarial Gains/Losses 24,000 Projected Benefit Obligation 24,000 B) 43,000 Pension Plan Assets OCI - Actuarial Gains/Losses 43,000 C) Pension Plan Assets OCI - Pension Plan Gains/Losses 24,000 24,000 D) Pension Plan Assets Pension Plan Assets 5,000 5,000 show Work