Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2018 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 40% 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 2017 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 2017 were $2,700,000. Accordingly, warranty expense and a warranty liability of $81,000 were recorded in 2017. In late 2018, 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 2018 were $3,200,000, and warranty expenditures in 2018 totaled $72,800. b. On December 30, 2014, Rival Industries acquired its office building at a cost of $840,000. It was depreciated on a straight-line basis assuming a usefuh life of 40 years and no salvage value. However, plans were finalized in 2018 to relocate the company headquarters at the end of 2022. The vacated office building will have a salvage value at that time of $620,000. c. Hobbs-Barto Merchandising, Inc., changed Inventory cost methods to LIFO from FIFO at the end of 2018 for both financial statement and income tax purposes. Under FIFO, the inventory at January 1, 2018, is $610,000, d. At the beginning of 2015, the Hoffman Group purchased office equipment at a cost of $242,000. 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, 2018, the company changed to the straight-line method. e. In November 2016, the State of Minnesota filed sult against Huggins Manufacturing Company, seeking penalties for violations of clean air laws. When the financial statements were issued in 2017, Huggins had not reached a settlement with state authorities, but legal counsel advised Huggins that it was probable the company would have to pay $120,000 in penalties. Accordingly, the following entry was recorded: Los-Ittigation Liability-litigation 120,000 120,000 Late in 2018, a settlement was reached with state authorities to pay a total of $262.000 in penalties 1. At the beginning of 2018. Jantzen Specialties, which uses the sum-of-the-years-digits method, changed to the straight-line method for newly acquired bulldings and equipment. The change increased current year net earnings by $357,000 1. 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 2018 related to the situation described Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required in the first account Meld.) View transaction let Journal entry worksheet Record journal entry as a direct result of the change Note Enter debits before credits General Journal Debit Credit Transaction a(1) 1. 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 2018 related to the situation described Complete this question by entering your answers in the tabs below. RequiredRequired 2 Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required in the first account field) View transaction list Journal entry worksheet Record journal entry as a direct result of the change. Note: Enter debits before credits. Transaction General Journal Debit Credit (1) 1. 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 2018 related to the situation described Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare any Journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field) View transaction list Journal entry worksheet 5 8 11 > Record adjusting entry for depreciation Note Enter debits before credits General Journal Debit Transaction (2) Credit 1. 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 2018 related to the situation described. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction ist Journal entry worksheet Record journal entry as a direct result of the change. Note: Enter debits before credits General Journal Debit Credit Transaction cft) 1. 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 2018 related to the situation described Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1. 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 2018 related to the situation described. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required in the first account held.) View transaction et nces Journal entry worksheet 6 7 8 11 Record journal entry as a direct result of the change. Note: Enter debits before credits Transaction General Journal Debit Credit 2. Prepare any Journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required in the first account hield.) View transaction list Journal entry worksheet 5 6 7 8 11 > Record adjusting entry for depreciation Note: Enter debits before credits General Journal Debit Credit Transaction d(2) 1. 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 2018 related to the situation described. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet