Account For Changes In Estimates Practice Test

A for-profit manufacturer revised its warranty liability estimate after a change in supplier materials reduced defect rates for products sold during the current year. Management concluded the expected claim rate should be lowered based on recent experience and updated expectations, consistent with FASB ASC 460-10 and the change-in-estimate guidance in ASC 250-10-45. What is the correct journal entry to reflect the revised estimate (assuming the existing warranty liability is overstated as of the revision date)?

A for-profit employer sponsors a defined benefit pension plan and updated actuarial assumptions during the current year due to demographic changes in its workforce (e.g., revised mortality and turnover assumptions). The change affects the projected benefit obligation measurement under FASB ASC 715 and is a change in estimate under ASC 250-10-45. How should the change in estimate be accounted for in the financial statements?