Pharoah Company purchased land and a building on January 1, 2022. Managements best estimate of the value of the land was $90,000 and of the building $180,000. However, management told the accounting department to record the land at $198,000 and the building at $72,000. The building is being depreciated on a straight-line basis over 15 years with no salvage value.

Calculate the annual change in net income