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Question - On January 1, 2019, Kiel Corporation acquired machinery at a cost of P1,455,000. Kiel adopted the straight- line method of depreciation for this machine and had been recording depreciation over an estimated life of twelve years, with no residual value. At the beginning of 2022, a decision was made to change to the double- declining balance method of depreciation for this machine. (Note: Do not round off the depreciation rate.)
1. Assuming a 25% tax rate, determine the cumulative effect of this accounting change on beginning retained earnings?
2. Determine the amount that Kiel should record as depreciation expense for 2022?
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