Refer to the situation described in BE 11-10. Assume that instead of changing the useful life and residual value, in 2018 the company switched to the double-declining-balance depreciation method. How should Robotics account for the change? What is depreciation on the building for 2018?
In BE 11-10
At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2016 and 2017 was calculated using the straight-line method, a 25-year useful life, and a $1 million residual value. In 2018, the estimates of useful life and residual value were changed to 20 years and $500,000, respectively.