Wiliams Sontana Incorporated is a manufacturer of high-tech industrial parts that was started in 2009 by two talented engineers with little business training In 2024, the company was acquired by one of its major customers. As part of an internal audit, the foliowing facts were discovered. The audit occurred during 2024 before any adjusting entries or closing entries were prepared. The income tax rate is 25% for all years A. A five year casualty insurance policy was purchased at the beginning of 2022 for $38,500. The full amount was debited to insurance expense ot the time b. Effective Januery 1,2024 , the company changed the salvage value used in calculating depreciation for its office building. The bulding cost $638,000 on December 29,2013 , and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salyage volue of $110,000. Declining real estate values in the area indicate that the salvage value will be no more than $27,500 c. On December 31,2023 , merchandise inventory was overstoted by $28,500 due to a mistake in the physical inventory count using the periodic inventory system d. The compony changed imventory cost methods to FifO from LifO at the end of 2024 for both financial statement and income tax purposes. The change will causo a $995,000 increase in the beginning inventory ot January 1,2025. e At the end of 2023 , the compony falled to accrue $17,100 of soles commessions earned by employees during 2023 The expense Was recorded when the commisstons were pald in early 2024 I At the beginning of 2022 , the company purchased a machine at a cost of $790,000, Its useful life was estimated to be 10 years Whth no salvage value. The machine has been deprecioted by the double declinimg bolance method. its book volue on December 31, 2023, was $505,600, On January 1,2024, the compary changed to the straight -line method 9. Whanty expense is determiried each year as 1% of sales. Actual payment experience of recent years indicates that 0.80% is a petter indication of the actual cost Management effects the change in 2024 Credit soles for 2024 are $4,700,000, in 2023 they were $4,400,000 Required: Foreach situotion 1. Identify whether it tepresents an accounting change or an errot if an accounting change identify the type of change. For accounting errors, choose "Not applicable" 2. Prepare any joutnal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2024 related to the situation described. Any tax effects should be adjusted for thingh income tax 1. Identify whether it represents an accounting change or an error if an accounting change, identify the type of change. For accounting errors, choose "Not applicable" 2. Prepare any joumal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2024 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund-income tax Complete this question by entering your answers in the tabs below. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change, For accounting errors, choose "Not applicable