The Peridot Company purchased machinery on January 2, 2016, for $890,000. A five-year life was estimated and no residual value was anticipated. Peridot decided to use the straight-line depreciation method and recorded $178,000 in depreciation in 2016 and 2017 Early in 2018, the company revised the total estimated life of the machinery to eight years Required: 1. What type of change is this? 3. Determine depreciation for 2018. 1. Type of change 3. New annual depreciation Indicate with the appropriate letter the nature of each situation described below: Type of Change PR Change in principle reported retrospectively PP Change in principle reported prospectively E Change in estimate Ep Change in estimate resulting from a change in principle R Change in reporting entity N Not an accounting change Type of Change Situation 1. Change from declining balance depreciation to straight-line 2. Change in the estimated useful life of office equipment. 3. Technological advance that renders worthless a patent with an unamortized cost of $45,000 4. Change from determining lower of cost or net realizable value (LCNRV) for the inventories by the individual item approach to the aggregate approach 5. Change from LIFO inventory costing to the weighted-average inventory costing. 6. Settling a lawsuit for less than the amount accrued previously as a loss contingency K Cnange in reporting entity N Not an accounting change Type of Change Situation 1. Change from declining balance depreciation to straight-line. 2. Change in the estimated useful life of office equipment. 3. Technological advance that renders worthless a patent with an unamortized cost of $45,000. Change from determining lower of cost or net realizable value (LCNRV) for the inventories by the individual item approach to the aggregate approach. 5. Change from LIFO inventory costing to the weighted-average inventory costing. 6. |Settling a lawsuit for less than the amount accrued previously as a loss contingency Including in the consolidated financial statements a subsidiary acquired several years earlier that was appropriately not included in previous years 8. Change by a retail store from reporting warranty expense on a pay-as-you-go basis to estimating the expense in the period of sale. A shift of certain manufacturing overhead costs to inventory that previously were expensed as incurred to more accurately measure cost of goods sold. (Either method is generally acceptable.) 10 Pension plan assets for a defined benefit pension plan achieving a rate of return in excess of the amount anticipated