Described below are three independent and unrelated situations involving accounting changes. Each change occurs during 2018 before any adjusting entries or closing entries are prepared.

a- On December 30, 2014, Rival Industries acquired its office building at a cost of $10,700,000. It has been depreciated on a straight-line basis assuming a useful life of 40 years and no residual value. Early in 2018, the estimate of useful life was revised to 28 years in total with no change in residual value.

b- At the beginning of 2014, the Hoffman Group purchased office equipment at a cost of $550,000. Its useful life was estimated to be 10 years with no residual value. The equipment has been depreciated by the sum-of-the-years-digits method. On January 1, 2018, the company changed to the straight-line method.

c- 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 buildings and equipment. The change increased current year net income by $515,000.

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. (Ignore income tax effects.)