gas, its near year-end, and toward is leeing ternac. Natural gas proces nave noen througnout the year, and tnergy rescurces is set to report record-breaking performance that will greatly exceed analysts' expectations. However, during an executhe meeting this morning, management agreed to "tone down" prolits due to concerns that reporting excess profits could encourage additional government reguiations in the indusiry, hindering future profiablity. At the beginning of the current year, the company purchased equipment for $4,284,000. The cornpany's standard practice for equipment like this is to use straight rine depreciation over 12 years using an estimated residual value of $714,000. To address the issue discussed in the meeting. Edward is consitering three options. Option t; Adjust the estimated service life of the equipment from 12 years to 6 years. Option 2: Adjust estimated resldual values on the equipment from 5714,000 to 50 . Option 3: Make both adjustments. Requited: 1. Calculate annual depreciation using the company's standard practice. 2. Calculate annual depreciabion for each of the three options and state whether the option woukd increase or decrease net income 3. Which option has the blggest effoct on net income? Complete this question by entering your answers in the tabs below. Calculate annual depreciation for each of the three options and state whether the option would increase or decrease net income