At the beginning of 2016, Wagner Implements undertook a variety of changes in accounting methods, corrected several errors, and instituted new accounting policies. Required: Identify for each item below the type of change and the reporting approach Wagner would use.
Type of Change (choose one)
P. Change in accounting principle
E. Change in accounting estimate
EP. Change in estimate resulting from a change in principle
X. Correction of an error
N. Neither an accounting change nor an accounting error.
Reporting Approach (choose one)
R. Retrospective approach
P. Prospective approach
Type of ChangeReporting Approach Item
1.By acquiring additional stock, Wagner increased its investment in Wise, Inc., from a 12% interest to 25% and changed its method of accounting for the investment to the equity method.
2.Wagner instituted a postretirement benefit plan for its employees in 2016. Wagner did not previously have such a plan.
3.Wagner changed its method of depreciating computer equipment from the SYD method to the straight-line method.
4.Wagner determined that a liability insurance premium it both paid and expensed in 2015 covered the 2015–2017 period.
5.Wagner custom-manufactures farming equipment on a contract basis. Wagner switched its accounting for these long-term contracts from the completed-contract method to the percentage-of-completion method.
6.Due to an unexpected relocation, Wagner determined that its office building, previously depreciated using a 45-year life, should be depreciated using an 18-year life.
7.Wagner offers a three-year warranty on the farming equipment it sells. Manufacturing efficiencies caused Wagner to reduce its expectation of warranty costs from 2% of sales to 1% of sales.
8.Wagner changed from LIFO to FIFO to account for its materials and work-in-process inventories.
9.Wagner changed from FIFO to average cost to account for its equipment inventory.
10.Wagner sells extended service contracts on some of its equipment sold. Wagner performs services related to these contracts over several years, so in 2016 Wagner changed from recognizing revenue from these service contracts on a cash basis to the accrual basis.

2. the external environment (connect)choose whether each example belongs in the general, task, or internal environment.exampleenvironmenta worldwide recession task environment / general environment / internal environmentlocal mothers asking their community grocery store to carry no-salt cheerios-type cereal for their babies task environment / general environment / internal environmentchoose the phrase that best completes the following sentence.the relationship between the task environment and the general environment is best described as: a one-way system: changes in the task environment affect the general environment, but changes in the general environment do not affect the task environment.an open system: changes in the task environment affect the general environment, and changes in the general environment affect the task environment.a one-way system: changes in the general environment affect the task environment, but changes in the task environment do not affect the general environment.a closed system: changes in the general environment do not affect the task environment, and changes in the task environment do not affect the general environment.©bloomberg via getty imagesmanagement in the newsin april 2010, the explosion of british petroleum’s (bp) deepwater horizon oil drilling rig and the accompanying oil spill dramatically changed the external environment in which all oil companies operate. the explosion released more oil than any other accidental spill in history and had a huge impact on the waters and surrounding communities of the gulf coast. the conditions that led to the spill, the attempts to stop the spill, and the clean-up and aftermath of the spill prompted debates in the u.s. senate, concern on wall street, and attention from companies all over the world.match each oil spill event with a specific dimension of the general environment.eventgeneral environment dimensionbp stock prices falling 25% during the first month after the oil spill oil seeping into pelican nesting grounds, which will place the brown pelican back on the endangered species list people moving from louisiana to oklahoma to avoid the effects of the spill