Please determine if each of the following 4 items should be treated as a change in accounting, error, or change in accounting estimate and how you would account for the change.

1. You have been using cash accounting for the last 4 years and the new accountant has determined that you need to change to accrual account this year.

2. You estimated two years ago that it would cost you $200,000 for a contingent liability based on a lawsuit. This year it was settled for $350,000.

3. You purchased equipment 2 years ago for $100,000 with a 4 year life and it was expensed. It was discovered this year and it should have been depreciated using straight.

4. You decided that equipment that you purchased Jan 1st last year for 20,000 with a 4 year life using double declining balance, should be changed to straight-line depreciation.