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Described below are three independent and unrelated situations involving accounting changes. Each change occurs during...

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Accounting

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Described below are three independent and unrelated situations involving accounting changes. Each change occurs during 2024 before any adjusting entries or closing entries are prepared. a. On December 30,2020 , Rival Industries acquired its office building at a cost of $9,990,000. It has been depreciated on a straight-line basis, assuming a useful life of 40 years and no residual value. Early in 2024 , the estimate of useful life was revised to 28 years in total with no change in residual value. b. At the beginning of 2020 , the Hoffman Group purchased office equipment at a cost of $648,000. Its useful life was estimated to be 10 years with no residual value. The equipment has been depreciated by the straight-line method. On January 1. 2024, the company changed to the double-declining-balance method. c. At the beginning of 2024, Jantzen Specialties, which uses the straight-line method, changed to the double-declining-balance method for newly acquired vehicles. The change decreased current year net income by $545,000. Required: 1. Identify the type of change. 2. Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2024 related to the situation described. (lgnore income tax effects.)

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