a. Practice problem PPE-CT9.6 Dicker Containers is suffering declining sales of its principal product, non-biodegradable plastic cartons. The managing director, Edward Mohlingo, instructs his controller, Betty Fettas, to lengthen asset lives to reduce depreciation expense. A processing line of automated plastic extruding equipment purchased for R3.1 million in January 2020, was originally estimated to have a useful life of 8 years and a residual value of R300,000. Depreciation has been recorded for 2 years on that basis. Edward wants the estimated life changed to 12 years total, and the straight-line method continued. Betty is hesitant to make the change, believing it is unethical to increase net profit in this manner. Edward says, "Hey, the life is only an estimate, and I've heard that our competition uses a 12-year life on their production equipment." Instructions Who are the stakeholders in this situation? b. Is the change in asset life unethical, or is it simply a good business practice by an astute managing director? Support your answer with reference to IAS16 What is the effect of Edward Mohlingo's proposed change on profit before taxes in the year of change? [Submit your answer using the BB link provided] Practice problem CT9-3 Use an annual report to identify a company's plant assets and the depreciation method used. REQUIRED Select a well-known company operating in the manufacturing Sector of South Africa. The company must be listed on the Johannesburg Securities exchange. Do a search on the Internet by that company name, and then answer the following questions: a. What is the name of the company? b. What is the Internet address of the annual report? c. At fiscal year-end, what is the carrying amount of its plant assets? d. What is the accumulated depreciation? e. Which method of depreciation does the company use? Page 14 c