1. Hanes Co. has just completed its preliminary financial statements forthe reporting year ended December 31, 2020; the preliminary income statement shows a pretax income of $220,000. Adjustments have been made, but the accounts have not been closed for the year. The management committee determines that an accounting change must be made for the depreciation of certain equipment. The equipment was acquired on 1/1/19 for $500,000, at which time it was estimated to have a useful life of 5 years, with a $50,000 residual value. The committee now feels that the machine's entire useful life will be 8 years, with a $20,000 residual value. After making all changes required as a result of this decision, Hanes' reported pretax income for 2020 will be: $280,000 b $261,429. $254,286 d. $220,000 a. C