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On January 1, 2017, Noble Company purchased a server at a cost of $90,000. Noble adopted the straight-line method of depreciation for this server and had been recording depreciation over an estimated life of 8 years. The salvage value is $0. At the beginning of 2020, Noble changed to the double-declining balance method of depreciation for this server and changed the estimated useful life to from 8 years to 10 years. Assuming a 16% tax rate.
Problem 1: What is the cumulative effect of this accounting change on beginning retained earnings of 2020?
Problem 2: What is the amount that Noble recorded as depreciation expense for 2019?
Problem 3: What is the amount that Noble recorded as depreciation expense for 2020?
Problem 4: What is the amount that Noble should record as depreciation expense for 2021?
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