A technology company, Microsoft Corporation, has the following data for the year ended December 31, 2023:

• Intangible assets cost: $3,000,000
• Accumulated amortization: $1,200,000
• Estimated remaining useful life: 4 years
• Annual amortization expense: $450,000
• Calculate the book value of intangible assets.
• Determine the new amortization expense if the remaining useful life is reduced to 3 years.
• How would the financial statements be affected by this change in estimate?
• Discuss the significance of the Conservatism Principle in amortization.
• How should the company record the change in amortization expense?