(d) Watanabe Wonders Containers (WWC) is suffering declining sales of its principal product, non- biodegradeable plastic cartons. The president, Yasu Watanabe, instructs his controller, Tomoko Otsuka, to lengthen asset lives to reduce depreciation expense. A processing line of automated plastic extruding equipment, purchased for 31,000,000 in February 2018, was originally estimated to have a useful life of 8 years and a residual value of 3,000,000. Depreciation has been recorded for 2 years on that basis. Yasu wants the estimated life changed to 12 years total, and the straight- line method continued. Tomoko is hesitant to make the change, believing it is unethical to increase profit in this manner. Yasu says, "Hey, the life is only an estimate, and I've heard that our competition uses a 12-year life on their production equipment." Page 1 of 7 Financial Accounting Written Assignment Fall Semester 2021 Required: Who are the stakeholders in this situation? (2 marks) (ii) Calculate the total accumulated depreciation that has been recorded for 2 years as indicated in the facts. (5 marks) Explain how would profit increase by simply lengthening the useful life of the asset, and is the change in asset life unethical, or is it simply a good business practice by an astute president? (10 marks)