Question #1 - Construction in Progress has a debit balance of $ Question #2 - Deferred Tax Liability has a credit balance of $ Question #3 - Retained Earnings has a credit balance of $ Question #4 - What should be reported in Swift's income statement for the year ended December 31, 2019, as the cumulative effect on prior years of changing the estimated useful life of the machine? Question #5 - What is the amount of depreciation expense on this machine that should be charged in Swift's income statement for the year ended December 31, 2019?

Problem #1 - During 2018, a construction company that began operations in 2016 changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. - Income tax rate of 30% for all years, . Gross prot gures under both methods for the past three years appear below: Co_mpleted-Contract PeLentagle-Completw 2016 $ 475,000 $ 900,000 2017 625 ,000 950,000 2018 OO _l,050,000 $1,800,000 $2,900,000 Question #1 Construction in Progress has a debit balance of $ Question #2 Deferred Tax Liabilig has a credit balance of $ Question #3 Retained Earnings has a credit balance of $ Problem #2 - Swift Company purchased a machine on January 1, 2016, for $900,000. - At the date of acquisition, the machine had an estimated useful life of six years with no salvage. - The machine is being depreciated on a straight-line basis. - On January 1, 2019, Swift determined, as a result of additional information, that the machine had an estimated useful life of eight years from the date of acquisition with no salvage. - An accounting change was made in 2019 to reect this additional information. Question #4 Assume that the direct effects of this change are limited to the effect on depreciation and the related tax provision, and that the income tax rate was 30% in 2016, 2017, 2018, and 2019. Question #4 - What should be reported in Swift's income statement for the year ended December 31, 2019, as the cumulative effect on prior years of changing the estimated useful life of the machine? Question #5 - What is the amount of depreciation expense on this machine that should be charged in Swift's income statement for the year ended December 31, 2019