1)On 1/1/11, Delta changed its inventory valuation method from the weighted average method to LIFO. As of that date, if Delta had always been using the LIFO method, its COGS (for all years combined) would have been $180 lower. The tax rate is (and always has been) 30%. By what amount, and in which direction (increase or decrease), should R.E. be adjusted on January 1, 2011, to reflect this change to LIFO:

2)Beta purchased a machine on January1, year1, for$300. On the date ofacquisition, the machine had an estimated useful life of six years with no salvage value. The machine was being depreciated on astraight-line basis. On January1, year4, Beta determined that the machine had an estimated life of eight years from the date of acquisition and a salvage value of $40.What is the amount of the depreciation expense that should be recorded at the end of year 4?