Question# 7 10 marks Ch 21 Part A: Required: Answer the questions where indicated. a) If a deposit received in 2019 from a customer for work to be performed in 2020 was recorded as revenue in 2019. is 2020 net income over or understated? b) If wages payable was not accrued at December 31, 2019, is 2019 net income over or understated? c) If costs to purchase inventory are increasing throughout the year, what method provides the higher ending inventory value? FIFO or weighted average ? Part B Wu Co follows IFRS Required: For each of the situations below, indicate the nature of the accounting change or correction by placing an "X" in the best selection Choose the best ONE only for each. State any assumptions needed, Change in Change in Change due to accounting Assumption accounting correction of ar ESTIMATE POLICY ERROR (prospective (if needed) treatment a) A change from the straight-line method to the effective interest method of amortization of a bond discount or premium b) Change in the amortization period for an intangible asset. c) Change in calculation of warranty liabilities based on new information d) Change due to adoption of a new accounting standard