North Ltd$.$ purchased a building in $20$X$5$ for $$1,410,000.$ Straight$-$line depreciation was used, with a useful life of $40$ years and a residual value of $$420,000.$ A full year of depreciation was charged in $20$X$5.$

In $20$X$8,$ the company decided to switch depreciation methods to declining balance, using a rate of $10\%.$ The tax rate is $20\%.$

Required:

$1.$ Assume this is a change in estimate, and calculate $20$X$8$ depreciation expense.

$2.$ Assume this is a change in policy, and calculate $20$X$8$ depreciation expense and the cumulative effect of the change on $20$X$8$ opening retained earnings.

$3.$ This part of the question is not part of your Connect assignment.