1.Agency Xacquired a machine on January 1,2016 for P10,000,000. The machine has an 8-year useful life with 5% residual value and was depreciated using the straight line method. The entity recorded a full year depreciation on the asset in 2016 and 2017. In January 2018, the entity estimated that the useful life of the asset from the date of acquisition should have been six years and the residual value is still 5%. What is the accumulated depreciation on December 31, 2018? How should you apply the change in your financial reports?