For each of the following scenarios, choose the option from the following list which best describes the treatment of the item on the financial statements of Turkey Inc. for the current year ending December 31, 2020:

a) Change in accounting policy requiring retrospective application

b) Change in estimate

c) Correction of error

d) None of the above

Required.

h.In 2020, the company incurred interest expense of $29,000 on a 20-year bond issue.

i.In calculating the depreciation in 2018 for buildings, an error was made which overstated income in that year by $75,000. The error was discovered in 2020.

j.In 2020, the company changed its method of depreciating plant assets from the double declining-balance method to the straight-line method.