Eplain each of these for a discussion board.

1. A manufacturing company recognized a loss on the sale of investments.

2. An automobile manufacturer sold all of the assets related to its financing component. The operations of the financing business are considered a component of the entity.

3. A company changed its depreciation method from the double-declining-balance method to the straight-line method.

4. Due to obsolescence, a company engaged in the manufacture of high-technology products incurred a loss on the write-down of inventory.

5. One of your clients discovered that 2015s depreciation expense was overstated. The error occurred because of a miscalculation of depreciation for the office building.

6. A cosmetics company decided to discontinue the manufacture of a line of womens lipstick. Other cosmetic lines will be continued. A loss was incurred on the sale of assets related to the lipstick product line. The operations of the discontinued line are not considered a component of the entity.