Classic Coverings (established in 2010) is in the process of updating its accounting policies for inventory costing, depreciation, and amortization. Decisions to implement a change on January 1, 2015 have gone forward, and information regarding the asset is below. December 31 is Classic Coverings' year end, and assume there is no income tax. Classic Coverings purchased a patent with no residual value on January 1, 2011 for $13,600. The patent was being amortized over its legal life of 17 years using the straight-line method. The company decided to change the useful life to a more accurate total of 12 years on January 1, 2015. a) Select the accounting change necessary in this situation.

Type of change =(Select one)

b) Select the approach which should be used.

Approach =(Select one)

c) Record the journal entries for amortization on December 31, 2014; the 2015 entry to record the accounting change in 2015, if any; and the amortization adjustment entry at the end of 2015. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places.

General JournalPage G3DateAccount/ExplanationPRDebitCredit2014

2015

d) Calculate how the 2014 financial statements are reported in the 2015 comparative statement. If there is no adjustment required enter a $0 value. Please make sure your final answer(s) are accurate to the nearest whole number.

Adjustment to beginning balance of 2015 retained earnings Adjustment to 2014 income statement amounts