Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2021 before any adjusting entrles or closing entrles 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 IIne of commerclal awnings in 2020 that carry a one-year warranty against manufacturer's defects. Based on Industry experlence, warranty costs were expected to approximate 3% of sales. Sales of the awnings in 2020 were $2,700,000. Accordingly, warranty expense and a warranty llability of $81,000 were recorded In 2020 . In late 2021, the company's claims experlence was evaluated, and it was determined that claims were far fewer than expected: 2% of sales rather than 3%. Sales of the awnings in 2021 were $3,200,000, and warranty expenditures in 2021 totaled $72,800. b. On December 30,2017 , Rival Industrles acquired its office building at a cost of $840,000. It was depreclated on a straight-line basis assuming a useful life of 40 years and no salvage value. However, plans were finalized in 2021 to relocate the company headquarters at the end of 2025 . The vacated office bullding 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 2021 for both financlal statement and Income tax purposes. Under FIFO, the Inventory at January 1,2021, is $610,000. d. At the beginning of 2018 , 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 depreclated by the sum-of-the-years'-digits method. On January 1,2021 , the company changed to the straight-line method. e. In November 2019, the State of Minnesota filed sult against Huggins Manufacturing Company, seeking penalties for violations of clean air laws. When the financlal statements were issued in 2020 , Huggins had not reached a settlement with state authoritles, 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: Late in 2021, a settlement was reached with state authoritles to pay a total of $262,000 in penaltles. f. At the beginning of 2021 , Jantzen Speclalties, which uses the sum-of-the-years'-digits method, changed to the straight-IIne method for newly acquired buildings and equipment. The change increased current year net earnings by $357,000. Required: For each situation: 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 2021 related to the situation described. Complete this question by entering your answers in the tabs below. Identify the type of change. Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet