Machinery was purchased at the beginning of 2017 for $950,000. At the time of its purchase, the machinery was estimated to have a useful life of six years and a salvage value of $80,000. The machinery was depreciated using the straight-line method through 2019. At the beginning of 2020, the estimated useful life was revised to a total of eight years and the expected salvage value was changed to $73,000. The amount recorded for 2020 depreciation expense should be $103,000 $55,250 $109,625 $88,400 Question 5 4 pts Bikelnside, Inc. began operations on January 1, 2015, has a 20% income tax rate and reports only the current year on its financial statements. On December 31, 2020, Bikelnside appropriately changed its inventory cost flow assumption to FIFO from Average Cost for both financial reporting and income tax purposes. The change will result in a $4,500,000 increase to its inventory at January 1, 2020. Ignoring income tax effects, what is the cumulative effect of this accounting change on beginning retained earnings? $4,500,000 $900,000 $750,000