It is December $2023$ and Carla Vista Inc recently hired a new accountant, Jodie Larson. Although Carla Vista is a private company, it

follows IfRS. As part of her preparation of the $2023$ financlal statements for Carla Vista, Jodie has proposed the following accounting

changer:

At December $31,2022,$ Carla Vista had a recelvable of $$285,000$ from Michael inc on its statement of financial position that

had been outstanding since mid$*2021.$ In December $2023,$ Michael was declared barkrupt and no recovery is expected. Jodie

proposes to write off the recelvable in $2023$ against retained earnings to correct a $2021$ error.

Jodie proposes to change from double$-$declining$-$balance to straight$-$line depreciation for the company's manufacturing

assets because of a change in the pattern in which the assets provide benefits to the company. If straight$-$line depreciation

had been used for all prior periods, retained earnings would have been $$434,112$ higher at December $31,2022.$ The change's

effect just on $2023$ income is a $$55,632$ reduction.

For equlpment in the leasing division, Jodie proposes to adopt the sum$-$of$-$the$-$years'$-$digits depreciation method, which the

company has never used before. Carla Vista began operating its leasing division in $2023.$ If straight$-$line depreciation were to

be used, $2023$ income would be $$125,400$ higher.

Carla Vista has decided to adopt the revaluation method for reporting and mearouring its land, with this policy being effective

from January $1,2023.$ At December $31.2022,$ the land's fair value was $$1\mathrm{.}026,000.$ The land's book value at December $31.$

was $$855,000.($Hint: Refer to LAS $8$ for the treatment of this specific change in policy$)$

Carla Vista has investments that are recorded at fair value through other comprehensive income $($PV$-$OCI$).$ At December $31.$

$2022,$ an error was made in the calculation of the fair values of these imvestments. The amount of the error was an

overstatement of the fair value by $$228000.$

Carla Vista's income tax rate is $30\%.$

$($a$)$

For each of the changes described above, identify whether the situation is a change in policy, a change in estimate, or an error

correction.