PARTA 5 Marks Chandilier Enterprises has a large asset worth $200 000 that it has been using the straight line method to depreciate since it was purchased on 1st July, 2019. The estimated useful life of the asset is 5 years and estimated residual value at the end of the asset's life is $0. During COVID in 2020 and 2021 the company moved its business online and has made record profits which are expected to continue for the next three years. The CEO John Doit has asked the accountant Melanie Bright if she could find a way to reduce profits over the next three years in order to avoid tax and give consistent returns to keep shareholders happy. Note: After 2024 business is expected to slow down. Although Melanie was unsure about the reasoning behind the request she decided, in order to keep John happy, that she would change to the Diminishing Balance Method using a rate of 35% over the next three years. She did not feel comfortable disclosing the change in the financial statements as she thought the reasons given for the change would not give a good impression. (a) Do you think that Melanie's decision to change depreciation methods will reduce profits as per John's request. Give reasons or calculations to substantiate your response. 3 marks (b) Do you agree with what Melanie did to make and report the change. Why or why not? 2 marks