4. Bullet Company determined that the amortization rate on its patents is unacceptably low due to current advances in technology. The entity decided at the beginning of 2014 to decrease the estimated useful life on all existing patents from 10 years to eight (8) years. Patents were purchased on January 1, 2009 for P3,000,000. The estimated residual value is zero. On January 1, 2014, the entity decided to change its depreciation method to the straight line method. The straight line method is to be used for the new acquisitions as well as for previously acquired equipment. On January 1, 2014, the total historical cost of depreciable assets is P8,000,000 and the accumulated depreciation is P3,400,000. The expected remaining useful life of the depreciable assets on January 1, 2014 is 10 years and the expected residual value is P200,000. Compute for the total charge against 2014 income as a result of the accounting changes 5. During 2014, Brookside Trading decided to change from the FIFO method of inventory valuation to the weighted average method. Inventory balances under each method were as follows: January 1 December 31 FIFO 7,200,000 7,900,000 Weighted Average 7,700,000 8,300,000 1. On January 1, 2011, Plumber Inc, purchased a machine for P2,640,000 and depreciated it by the straight line method using an estimated life of eight (8) years with no residual value. On January 1, 2014, the entity determined that the machine had a useful life of six (6) years from the date of acquisition with a residual value of P240,000. Compute for the accumulated depreciation of the machine on December 31, 2014. 2. On January 1, 2012, Fan Industries purchased a machine for P2.400,000 with a useful life of 10 years and no residual value. The machine was depreciated by the double declining balance method and the carrying amount of the machine was P1,536,000 on December 31, 2013. The entity changed to the straight line method on January 1, 2014. Compute for the depreciation of the machine for the year ended December 31, 2014 3. On January 1, 2014, Italy Corporation has determined that a revision in the estimate associated with the depreciation storage facility was appropriate. The facility, purchased on January 1, 2012 for P6,000,000, has been depreciated using the straight line method with an estimated residual value of P600,000 and an estimated useful life of 20 years. The entity has determined that the expected remaining useful life of the storage facility is 10 years with an estimated residual value of P800,000. Compute for the depreciation of the storage facility for 2014. 5. During 2014, Brookside Trading decided to change from the FIFO method of inventory valuation to the weighted average method. Inventory balances under each method were as follows: January 1 December 31 FIFO 7,200,000 7,900,000 Weighted Average 7,700,000 8,300,000 Ignoring income tax, compute for the amount that should be reported as the effect of the accounting change in the statement of changes in equity for 2014, ANSWER ALL OF THEM OR SOME OF THE PROBLEMS