Please correct Solution with Explanation and do not give image format Described below are six independent and unrelated situations involving accounting changes. Each change occurs during2024 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 25% in allyears. Any tax effects should be adjusted through the deferred tax liability account.Fleming Home Products introduced a new line of commercial awnings in 2023 that carry a one-year warranty againstmanufacturer's defects. Based on industry experience, warranty costs were expected to approximate 2% of sales. Sales ofthe awnings in 2023 were $4,500,000. Accordingly, warranty expense and a warranty liability of $90,000 were recordedin 2023. In late 2024, the company's claims experience was evaluated, and it was determined that claims were far fewerthan expected: 1% of sales rather than 2%. Sales of the awnings in 2024 were $5,000,000, and warranty expenditures in2024 totaled $113,750.On December 30, 2020, Rival Industries acquired its office building at a cost of $1,200,000. It was depreciated on astraight-line basis assuming a useful life of 40 years and no salvage value. However, plans were finalized in 2024 torelocate the company headquarters at the end of 2028. The vacated office building will have a salvage value at that timeof $800,000.Hobbs-Barto Merchandising, Incorporated, changed inventory cost methods to LIFO from FIFO at the end of 2024 forboth financial statement and income tax purposes. Under FIFO, the inventory at January 1, 2024, is $790,000.At the beginning of 2021, the Hoffman Group purchased office equipment at a cost of $440,000. Its useful life wasestimated to be 10 years with no salvage value. The equipment was depreciated by the sum-of-the-years'-digits method.On January 1, 2024, the company changed to the straight-line method.In November 2022, the State of Minnesota filed suit against Huggins Manufacturing Company, seeking penalties forviolations of clean air laws. When the financial statements were issued in 2023, Huggins had not reached a settlementwith state authorities, but legal counsel advised Huggins that it was probable the company would have to pay $300,000in penalties. Accordingly, the following entry was recorded:Account Name Debit CreditLoss litigation 300,000Liability-litigation300,000Late in 2024, a settlement was reached with state authorities to pay a total of $460,000 in penalties.At the beginning of 2024, Jantzen Specialties, which uses the sum-of-the-years'-digits method, changed to the straight-line method for newly acquired buildings and equipment. The change increased current year net earnings by $555,000.Required:For each situation: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 tothe situation described.

JOURNAL ENTRY-IT IS A BOOK OF PRIMARY ENTRY OR A BOOK OF ORIGINAL ENTRY IN WHICH TRANSACTION ARE…

ars. Any tax effects should be adjusted through the deferred tax liability account. ming Home Products introduced a new line of commercial awnings in 2023 that carry a one-year warranty against anufacturer's defects. Based on industry experience, warranty costs were expected to approximate 2% of sales. Sales of awnings in 2023 were $4,500,000. Accordingly, warranty expense and a warranty liability of $90,000 were recorded 2023. In late 2024, the company's claims experience was evaluated, and it was determined that claims were far fewer an expected: 1% of sales rather than 2%. Sales of the awnings in 2024 were $5,000,000, and warranty expenditures in 24 totaled $113,750. December 30, 2020, Rival Industries acquired its office building at a cost of $1,200,000. It was depreciated on a aight-line basis assuming a useful life of 40 years and no salvage value. However, plans were finalized in 2024 to ocate the company headquarters at the end of 2028. The vacated office building will have a salvage value at that time $800,000. bbs-Barto Merchandising, Incorporated, changed inventory cost methods to LIFO from FIFO at the end of 2024 for th financial statement and income tax purposes. Under FIFO, the inventory at January 1, 2024, is $790,000. the beginning of 2021, the Hoffman Group purchased office equipment at a cost of $440,000. Its useful life was imated to be 10 years with no salvage value. The equipment was depreciated by the sum-of-the-years-digits method. January 1, 2024, the company changed to the straight-line method. November 2022, the State of Minnesota filed suit against Huggins Manufacturing Company, seeking penalties for lations of clean air laws. When the financial statements were issued in 2023, Huggins had not reached a settlement th state authorities, but legal counsel advised Huggins that it was probable the company would have to pay $300,000 penalties. Accordingly, the following entry was recorded: Account Name Debit Credit Loss-litigation 300,000 ability-litigation 300,000 te in 2024, a settlement was reached with state authorities to pay a total of $460,000 in penalties.