Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2021 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 25% in all years. Any tax effects should be adjusted through the deferred tax llability account. a. Fleming Home Products introduced a new line of commercial awnings in 2020 that carry a one-year warranty against manufacturer's defects. Based on industry experience, warranty costs were expected to approximate 3% of sales. Sales of the awnings in 2020 were $3,500,000. Accordingly. warranty expense and a warranty liability of $105,000 were recorded in 2020 . in sales rather than 3%. Sales of the awnings in 2021 were $4,000,000, determined that claims were far fewer than expected. 2%. b. On December 30, 2017, Rival Industries acquired its office buliding, and warranty expenditures in 2021 totaled $91,000. basis assuming a useful life of 40 years and no salvage value. How at a cost of $1,000,000. It was depreciated on a straight-line headquarters at the end of 2025. The vacated office buliding wowever, plans were finalized in 2021 to refocote the company c. Hobbs-Barto Merchandising. Inc, changed inventory cost mo will have a salvage volue at that time of $700,000 and income tax purposes. Under FIFO, the inventory at January 1,2021 , is $690,000 d. At the beginning of 2018, the Hoffman Group purchased office equipment at in 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" dligits method. On January 1,202t the company changed to the straight-line method. e. In November 2019, the State of Minnesota fied sult against Huggins Manufacturing Company seeking penalties for violations of clean air laws. When the financial statements were issued in 2020 , Huggins had not renched o settiomert with state authorities, but legat counsel advised Huggins that it was probable the company woufd have to pay $200,000 in penatties. Accordingly, the following entry was recorded: Late in 2021, a settiement was reached with state authorities to poy a total of $350.000 in penaities, f. At the beginning of 2021, Jantzen Specinition. which uses the sum-of the-years-diols method, ehanged to the straight-he method for newly acquired buldings and equipment. The change incresoed cutrent year net earnings by 3445,000 Required: For each situation: 1. identify the type of change. 2. Prepare any joumai entry necessary as-a direct result of the change; as well as any agiuting enty for 2021 retated to the stiaition described