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 $3\%$ of sales. Sales of the awnings in $2023$ were $$4,100,000.$ Accordingly, warranty expense and a warranty liability of $$123,000$ 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: $2\%$ of sales rather than $3\%.$ Sales of the awnings in $2024$ were $$4,600,000,$ and warranty expenditures in $2024$ totaled $$104,650.$

b$.$ On December $30,2020,$ Rival Industries acquired its office building at a cost of $$1,120,000.$ It was depreciated on a straight$-$line basis assuming a useful life of $40$ years and no salvage value. However, plans were finalized in $2024$ to relocate the company headquarters at the end of $2028.$ The vacated office building will have a salvage value at that time of $$760,000.$

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 $$750,000.$

d$.$ At the beginning of $2021,$ the Hoffman Group purchased office equipment at a cost of $$396,000.$ 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 $$260,000$ in penalties. Accordingly, the following entry was recorded: