Accounting Changes-Depreciation Described below are two independent and unrelated situations involving accounting changes. Each change occurs during 2016 before any adjusting entries or closing entries were prepared. a. On December 30, 2012, Rival Industries acquired its office building at a cost of $1,000,000. It was depreciated on a straight-line basis assuming a useful life of 40 years and no salvage value. However, plans were finalized in 2016 to relocate the company headquarters at the end of 2020. The vacated office building will have a salvage value at that time of $700,000. b. At the beginning of 2013, the Hoffman Group purchased office equipment at a cost of $330,000. Its useful life was estimated to be 10 years with no salvage value. The equipment was depreciated by the sum-of-the years-digits method. On January 1, 2016, the company changed to the straight-line method. Instructions: a. Briefly describe the way company should report this accounting change in the financial statements. b. Prepare any 2016 journal entry related to the change.