Part C (12 marks) Answer each of the following cases independently. Case 1 Suppose a company was having a bad year-net income was well below expectations and lower than last year's income. For depreciation purposes, the company extended the estimated useful lives of the depreciable assets. How would this accounting change affect the company's (a) depreciation expense and (b) owner's equity? (2 marks) Case 11 Money Short Ltd. has 1,500 shares of cumulative no par value preferred shares with a $5 annual dividend and 4,000 shares of no par value common. No dividends were paid in 2014 or 2015. At the beginning of 2016, the company had a deficit balance of $5,000 in retained earnings. During 2016, the company reported net earnings of $87,000. Dividends were declared to the preferred shareholders and a $3 dividend was declared to the common shareholders Also assume that during 2016, Money Short Ltd. declares and distributes a 5% stock dividend on its common shares just prior to the end of its fiscal year. The fair market value of Money Short's common shares on declaration day was $8.00. Required: Prepare all the necessary journal entries (no explanation required) and show the ending balance in the retained earnings account as at December 31, 2016 using a T-account. (10 marks)