Required Driscoll Industries recognized the annual cost of depreciation on its December 31, year 2, financial statements. Using the following horizontal financial statements model, indicate how this event affected the company's GAAP-based financial statements under the following two assumptions: (1) the depreciation was on office furniture and (2) the depreciation was on manufacturing equipment. Indicate whether the event increases, decreases, or has no effect (leave blank) on each element of the financial statements. Show accumulated depreciation as a decrease in the book value of the appropriate asset account. x Answer is complete but not entirely correct. Balance Sheet Income Statement Assets Stockholders' Equity Event Number Book Value Book Value Common Retained Ne Cash Inventory Manufacturing Office Expenses = Stock Earnings Revenue Equipment Furniture Increase X + Increase X Increase X + Increase X Increase X + Increase X Increase X Increase = Inc 1 . X Inc 2. Increase X + Increase + Increase X + Increase X = Increase X + Increase X Increase X Increase