Situation $1$: Sanford Company is in the process of having its first audit. The company has used the cash basis of accounting for revenue recognition. Sanford president, B$.$ J$.$ Jimenez, is willing to change to the accrual method of revenue recognition.

Situation $2$: Hopkins Co$.$ decides in January $2026$ to change from FIFO to average$-$cost pricing for its inventories.

Situation $3$: Marshall Co$.$ determined that the depreciable lives of its fixed assets are too long at present to fairly match the cost of the fixed assets with the revenue produced. The company decided at the beginning of the current year to reduce the depreciable lives of all of its existing fixed assets by $5$ years.

For each of the situations described, provide the information indicated below.