08-4 Preakness Consulting and Bellevue Services Preakness Consulting and Bellevue Services are two petroleum engineering firms located in Calgary. Both companies are very successful and are looking to attract additional investors to provide them with an infusion of capital to expand. In the past year, both companies had consulting revenue of $1.5 million each On January 1, 2020, both companies purchased new computer systems. Currently, the only other asset owned by the companies is office equipment, which is fully depreciated. The computer systems, related hardware, and installation cost each company S660,000, and the systems have an expected life of five years. The residual value at the end of the five-year period is expected to be $30,000 in each case. Preakness has chosen to depreciate the computer equipment using the straight lint method, while Bellevue has taken a more aggressive approach and is depreciating the system using the double diminishing-balance method. Both companies have a December 31 year end and a tax rate of 259. Information on the other expenses is as follows: Preakness Bellevue Salaries and wages $750,250 $747,500 Rent 44,800 Other operating expenses 110,670 109,790 Required a. For each company, prepare a depreciation schedule showing the amount of depreciation expense to be charged each year for the computer system b. Prepare statements of income for the current year for both companies c. How might an unsophisticated investor interpret the financial results from part? Is one company really more profitable than the other 46,400