1. Referencing the screenshot below, what is the monetary effect of the depreciation accounting method change on the reported income in 1984?How and by how much ($) will this change affect profits in future years?

Accounting Changes: Effective November 1, 1983, the Corporation includes in its net sales products purchased from Kobe Steel, Ltd. and sold by the Corporation, to reflect more effectively the nature of the Corporation's transactions with Kobe. Previously only the gross margin on Kobe-originated equipment was included. During fiscal year 1984 such sales aggregated $28.0 million. Also, effective November 1, 1983, the financial statements of certain foreign subsidiaries are included on the basis of their fiscal years ended July 31. This change had the effect of increasing net sales by $5.4 million for the year ended October 31, 1984. The impact of these changes on net income was insignificant In 1984, the Corporation has computed depreciation expense on plants, machinery and equipment using the straight-line method for financial reporting purposes. Prior to 1984, the Corporation used principally accelerated methods for its U.S. operating plants. The cumulative effect of this change, which was applied retroactively to all assets previously subjected to accelerated depreciation, increased net income for 1984 by $11.0 million or 5.93 per common and common equivalent share. The impact of the new method on income for the year 1984 before the cumulative effect was insignificant. As a result of the review of its depreciation policy, the Corporation, effective November 1, 1983, has changed its estimated depreciation lives on certain U.S. plants, machinery and equipment and residual values on certain machinery and equipment, which increased net income for 1984 by $3.2 million or $27 per share. No income tax effect was applied to this change