During 2020 it became apparent that inereased demand fot products would force the company to replace its equipment earlier than originally anticipated. The equipment was purchased on January 1, 2018 for $100,000.At that time the expected economie life, which is equal to the expected useful life, was 10 years and salvage value was estimated at $30,000. Now, management is convinced the equipment will he disposed of on December 31, 2023, for $6,000. No depreciation has been recorded in 2020 for this equipment.

It was discovered that a patent was being amortized over its legal life of 17 years. instead of its useful life of 5 years. The patent was purchased on January 1, 2018, for $25,000.

The company decided to change its inventory value method from FIFO to Weight average. Under FIFO, beginning and ending inventory for 2020 would have been $12,000 and $16,000, respectively. Under Weighted-average, the ending inventory is valued at $13,000. Unfortunately, the existing records do not allow the re-creation of the Weighted-average inventory for previous years.

For each change in 1 to 3 above:

-state the type of change

-state how each change should be treated, and

-prepare journal enteries to record the change