Described below are six independent and unrelated situations involving accounting changes. Each change occurs during $2024$ 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 liability account.

a$.$ Fleming Home Products introduced a new line of commercial awnings in $2023$ that carry a one$-$year warranty against

manufacturer's defects. Based on industry experience, warranty costs were expected to approximate $2\%$ of sales. Sales of the

awnings in $2023$ were $$2990,000.$ Accordingly, warranty expense and a warranty liability of $$58,000$ were recorded in $2023.$ In

late $2024,$ the company's claims experience was evaluated, and it was determined that claims were far fewer than expected: $1\%$

of sales rather than $2\%.$ Sales of the awnings in $2024$ were $$3\mathrm{.}400,000,$ and warranty expenditures in $2024$ totaled $$77,350.$

b$.$ On December $30,2020.$ Rival Industries acquired its office building at a cost of $$880\mathrm{.}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 $2024$ to relocate the company

headquarters at the end of $2028.$ The vacated office building will have a salvage value at that time of $$640,000.$

c$.$ Hobbs$-$Barto Merchandising. Incorporated, changed inventory cost methods 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 $$630\mathrm{.}000.$

d$.$ At the beginning of $2021,$ the Hoffman Group purchased office equipment at a cost of $$264\mathrm{.}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 $1,2024.$

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 $2023.$ Huggins had not reached a settlement with state authorities,

but legal counsel advised Huggins that it was probable the company would have to pay $$140,000$ in penalties. Accordingly, the

following entry was recorded:

Late in $2024,$ a settlement was reached with state authorities to pay a total of $$284,000$ in penalties.

f$.$ At the beginning of $2024,$ Jantzen Specialties, which uses the sum$-$of$-$the$-$years'$-$digits method, changed to the straight$-$line

method for newly acquired buildings and equipment. The change increased current year net earnings by $$379,000.$

Required:

For each situation:

Identify the type of change.

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.