(Accounting for Accounting Changes and Errors) Listed below are various types of accounting changes and errors.

1. Change in a plant asset’s salvage value.

2. Change due to overstatement of inventory.

3. Change from sum-of-the-years’-digits to straight-line method of depreciation.

4. Change from presenting unconsolidated to consolidated financial statements.

5. Change from LIFO to FIFO inventory method.

6. Change in the rate used to compute warranty costs.

7. Change from an unacceptable accounting principle to an acceptable accounting principle.

8. Change in a patent’s amortization period.

9. Change from completed-contract to percentage-of-completion method on construction contracts.

10. Change from FIFO to average-cost inventory method.

Instructions For each change or error, indicate how it would be accounted for using the following code letters:

(a) Accounted for prospectively.

(b) Accounted for retrospectively.

(c) Neither of the above.