indicate how a company reports the preceding items specify whether increases or decr 610582

Identification and Effects of Changes and Errors – The following are several independent events:

1. Change from the FIFO to the LIFO inventory cost flow assumption.

2. Write-off of patent due to the introduction of a competing product.

3. Payment to the Internal Revenue Service in settlement of a dispute over previous year’s taxes.

4. Increase in allowance for uncollectible accounts from 2% to 4% of credit sales.

5. Change from straight-line to double-declining-balance method.

6. Write-down of an asset to reflect probable future losses.

7. A change from full cost to successful efforts accounting for oil exploration costs.

Required

Indicate how a company reports the preceding items (specify whether increases or decreases can generally be expected) in its financial statements of the current year.