Avery Corporation made the following determinations about three depreciable assets:

? Depreciable asset M was purchased on January 1, 2015. The original cost was $114,000 and this amount was entirely expensed in 2015. This particular asset has an 8-year useful life and no salvage value. The straight-line method should have been used for depreciation purposes.

? Depreciable asset N was purchased January 1, 2016. It originally cost $540,000 and, for depreciation purposes, the sum-of-the-years digit method was originally chosen. The asset was originally expected to be useful for 10 years and have a zero salvage value. In 2017, the decision was made to change the depreciation method from sum-of-the-years digits to straight-line to better match costs.

Note: The estimates relating to useful life and salvage value remained unchanged.

? Depreciable asset O was purchased January 1, 2013. It originally cost $160,000 and, for depreciation purposes, the straight-line method was chosen. The asset was originally expected to be useful for 8 years and have a zero salvage value. In 2017, the decision was made to extend the total life of this asset to 10 years and to estimate the salvage value at $5,000.

a) Indicate if the situation is a change in accounting principle, a change in accounting estimate or an error in the financial statement. What is the proper accounting treatment (retrospective, restatement, prospective) for each of these assets?

You must support your conclusions with cites to the applicable guidance listed in the FASB Codification. Ignore tax implications and assume all errors are material to the client and require adjustment.

b) What journal entries would be appropriate at 12/31/2017 for each of these assets? Ignore tax implications.