A footnote to the financial statements of Allegheny Teledyne Incorporated stated the following:

The straight-line method of depreciation was adopted for all property placed into service after July 1, 1996. Buildings and equipment acquired prior to that time are accounted for under accelerated methods. The company believes that the new method will more appropriately reflect its financial result by better allocating costs of new property over the useful lives of these assets. In addition, the new method conforms more closely to that prevalent in the industries in which Allegheny operates.

a. What impact will the new method have on Allegheny’s net income?

b. Briefly discuss some of the reasons that may have caused Allegheny to change the method of depreciation.

c. Where else in the annual report could one fine evidence that Allegheny changed its method of depreciation?