On January 1, 2017, Nobel Corporation acquired machinery at a cost of ₱800,000. Nobel adopted the straight-line method of depreciation for this machine and had been recording depreciation over an...

On January 1, 2017, Nobel Corporation acquired machinery at a cost of ₱800,000. Nobel adopted the straight-line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value. At the beginning of 2020, a decision was made to change to the double-declining balance method of depreciation for this machine.

1. Assuming a 30% tax rate, the cumulative effect of this accounting change on beginning retained earnings, is
   
   
   
   1. ₱89,600                                                    ₱105,280
   
   
   2. ₱0                                                    ₱150,400
   
   
   
   

1. The amount that Nobel should record as depreciation expense for 2020 is
   
   
   
   1. ₱80,000                                                    ₱160,000
   
   
   2. ₱112,000                                                    ₱192,000