1. At the beginning of 2019, the Healthy Life Food Company purchased equipment for $42 million to be used in the manufacture of a new line of gourmet frozen foods. The equipment was estimated to have a 10-year service life and no residual value. The straight-line depreciation method was used to measure depreciation for 2019 and 2020. Late in 2021, it became apparent that sales of the new frozen food line were significantly below expectations. The company decided to continue production for two more years and then discontinue the line. At that time, the equipment will be sold for minimal scrap values. The controller was asked by the CEO to determine the appropriate treatment of the change in service life of the equipment. The controller determined that there has been an impairment of value requiring an immediate write-down of the equipment of $12,900,000. The remaining book value would then be depreciated over the equipments revised service life. The CEO does not like the controllers conclusion because of the effect it would have on 2021 income. Looks like a simple revision in service life from 10 years to 5 years to me so lets go with it that way. What is the difference in before-tax income between the CEOs controllers treatment of the situation and discuss the controllers ethical dilemma.