1. On January 1, 2016, ABC Company purchased for P5,000,000 a machine with a useful life of ten(10)years and no salvage value. The machine was depreciated by the doubledeclining balance method. The company shifted to the straightline method of depreciation on January 1, 2020, disclosing in its books the reason for the change. What should be the depreciation expense on this machine for the year ended December 31, 2020?

2. On January 1,2020, ABC Company changed its inventory cost flow method to FIFO from LIFO for both financial statement and income tax reporting purposes to comply with the new standard. The change resulted in a P600,000 increase in the beginning inventory at January 1, 2020. Prepare a journal entry to effect this change.