On January1, 2021, an entity decided to decrease the estimated useful life of an existing patent from 10 years to 8 years. The patent was purchased on January 1, 2016 for P3,000,000. The estimated...

Extracted text: On January1, 2021, an entity decided to decrease the estimated useful life of an existing patent from 10 years to 8 years. The patent was purchased on January 1, 2016 for P3,000,000. The estimated residual value is zero. The entity decided on January 1, 2021 to change the depreciation method from an accelerated method to the straight line method. On January , 2021, the cost of an equipment is P8,000,000 and the accumulated depreciation is P3,400,000. The remaining useful life of the equipment on January 1, 2021 is 10 years and the residual value of the patent is P200,000.What is the total charge against income for 2021 as a result of the accounting changes? * O a. 940,000 b. 960,000 c. 627,500 d. 647,500