7 Check my work Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2018 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 40% in all years. Any tax effects should be adjusted through the deferred tax liability account 32 ints a. Fleming Home Products introduced a new line of commercial awnings in 2017 that carry a one-year warra manufacturer's defects. Based on industry experience, warranty costs were expected to approxim of the awnings in 2017 were $4,200.000. Accordingly, warranty recorded in 2017 In late 2018, the company's claims ex far fewer than expected 1% of sales rather than 2%. Sales of the awnings in 2018 were $4700000 and warranty expenditures in 2018 totaled $106,925 ate 2% of sales. Sales expense and a warranty liability of $84,000 were eBook perience was evaluated and it was determined that claims were December 30, 2014. Rival Industries acquired its office building at a cost of $1,140,000. It was depreciated ona straight-line basis relocate the company headquarters at the end of 2022. The vacated office building will have a salvage value at that time of $770,000. Print assuming a useful life of 40 years and no salvage value. However, plans were finalized in 2018 to c Hobbs-Barto Merchandising, Inc. changed inventory cost methods to LIFO from FiFO at the end of 2018 for both financil d. At the beginning of 2015, the Hoffman Group purchased office equipment at a cost of $407000. Its useful life was References statement and income tax purposes. Under FIFO, the inventory at January 1, 2018, is $760,000 estimated to be 10 years with no salvage value. The equipment was depreciated by the sum-of-the-years'-digits method. On January 1, 2018, the company changed to the straight-line method e. In November 2016, the State of Minnesota filed sult 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 authorities, but legal counsel advised Huggins that it was probable the company would have to pay $270,000 in penalties. Accordingly, the following entry was recorded: Loss-lltigation 270,000 Liability-lIt Igat lon 270,000 Late in 2018, a settlement was reached with state authorities to pay a total of $427,000 in penalties f. At 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 $522.000 Required: For each situation