Described below are six independert and unrelated situotions involving accoonting changos Escli change oceuls during 2021 before any adjusting eotres cr closing entiles were prepated Assome the tav rate for ech compani 25\% in all years. Any tix effects should be adjusted through the defentod tas liabity occoint. 3. Fleming Home Products introduced a new line of commereial awtings in 2020 that carty a oneyear wartanty against manufacture''s defects. Based on industry experience, warranty conts were expected to epproximpetl 3: of sales. Saies of the awnings in 2020 wete $3,300.000. Accordingly, warronty evpenae and a wactonty liabich of $99.000 were recorded in 2020 . In late 2021, the company's ciams expenence was pvaluateo, nnd it wos determined that claims were far fewer than expected: 2% of sales rather than 34 . Soles of the avqringh in 2021 were $3,800000, and warranty expenditures in 2021 totoled $86,450 b. On December 30, 2017. Rival Industries acquired its office building at a cost of 5960.000 . h was depreciated on a straight-line basis assuming a useful life of 40 years and no solvage value. However. plans were finolized ia 2021. to relocate the company headquarters at the end of 2025 . The vacated office bulding will have a saivage volue at thot time of $680,000 c. Hobbs-Barto Merchandising. Inc, changed inventory cost methods to LFO trom FFFO bt the end of 2021 for both financial statement and incame tax pirposes. Under FFO, the inventory at January 1, 2021, is $670,000 d. At the beginning of 2018, the Hoffman Group purchased office equipment at a cost of 5308.000 . 7ts useful life. was estimated to be 10 years with no salvage valie. The equipment was depreciated by the sum of the-veas'digits method. On danuary 1, 2021, the company changed to the straight-line method e. In November 2019, the State of Minnesota filed sult against Huggins Manufactuting Compony, seehing penalies: for violations of clean air laws. When the financial statements were issued in 2020, Huggins had not reached a. settlement with state suthorities, but legal counsel adivised Huggins that it was probable the compamy would have to pay $180,000 in penalties. According y, the following entry was recorded: Late in 2021, a settiement was reached with state authorities to pay a total of $328,000 in penalies. f. At the beginning of 2021. Jantzen Specialues, which uses the sum-of-the-years'-digits method, changed to the straight-line method for newly acquired buildings and equlpment. The change increased current year net earnings by $423,000 Required: For each situation: 1. Identify the type of change. 2. Prepare any joumal entry necessary as a direct result of the change, as well as any adjusting entry for 202 related to the situation described. Complete this question by entering your answers in the tabs below