Oracle Corporation Data for the year ended December 31, 2023:

Item	Amount
Property, Plant, and Equipment (PPE) Cost	$30,000,000
Accumulated Depreciation	$12,000,000
Estimated Salvage Value	$3,000,000
Remaining Useful Life	9 years
Annual Depreciation Expense	$2,000,000

1. Calculate the book value of PPE.
2. Determine the new depreciation expense if the estimated useful life is reduced to 7 years.
3. Discuss the financial statement impact of this change in estimate.
4. Explain why the Conservatism Principle is important in depreciation.
5. How should Oracle record the change in depreciation expense?