C. Hobbs -Barto merchandises, Incorporated, changed inventory cost method to LIFO from FIFO at the end of 2024 for both financial statement and income tax purposes. Under FIFO the inventory at January 1,2024 is 740,000 d. at the beginning of 2021, the Hoffman group purchased office equipment at a cost of 385,000. its useful life was estimated to be 10 years with no salvage value. the equipment was depreciated by the sum of the year's digits method. On January 1,2024. the company changed to the straight line method. e. In November 2022, the state of Minnesota filed suit against Huggins Manufacturing company seeking penalties for violations of clean air laws. when the financial statements were issued in 2023. Huffins had not reached a settlement with state authorities, but legal counsel advised advised Huggins that it was probable the company would have to pay 250,000 in penalties. Accordingly, the following entry was recorded: Loss-litigation debit 250,000 and liability litigation credit 250,000. Late in 2024,a settlement was reached with state authorities to pay a total 405,000 Require:Identify the type of change. 2.prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2024 related to the situation described