Sheridan Corporation performs year-end planning in November of each year before its calendar year ends in December. The preliminary estimated net income is $3,360,000. The CFO, Rita Warren, meets with the company president, J. B. Aston, to review the projected numbers. She presents the following projected information.

SHERIDAN CORPORATION PROJECTED INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales				$32,474,400
Interest revenue				5,600
Cost of goods sold		$15,680,000
Depreciation		2,912,000
Operating expenses		7,168,000		25,760,000
Income before income tax				6,720,000
Income tax				3,360,000
Net income				$3,360,000

SHERIDAN CORPORATION SELECTED BALANCE SHEET INFORMATION AT DECEMBER 31, 2017
Estimated cash balance		$5,600,000
Available-for-sale debt investments (at cost)		11,200,000
Fair value adjustment (1/1/17)		0

Estimated fair value at December 31, 2017:

Security		Cost		Estimated Fair Value
A		$2,240,000		$2,464,000
B		4,480,000		4,368,000
C		3,360,000		3,360,000
D		1,120,000		2,016,000
Total		$11,200,000		$12,208,000

Other information at December 31, 2017:

Equipment		$3,360,000
Accumulated depreciation (5-year SL)		1,344,000
New robotic equipment (purchased 1/1/17)		5,600,000
Accumulated depreciation (5-year DDB)		2,240,000

The corporation has never used robotic equipment before, and Warren assumed an accelerated method because of the rapidly changing technology in robotic equipment. The company normally uses straight-line depreciation for production equipment. Sheridan explains to Warren that it is important for the corporation to show a $7,840,000 income before taxes because Sheridan receives a $1,120,000 bonus if the income before taxes and bonus reaches $7,840,000. Sheridan also does not want the company to pay more than $3,360,000 in income taxes to the government. (a) What can Warren do within GAAP to accommodate the presidents wishes to achieve $7,840,000 in income before taxes and bonus? Present the revised income statement based on your decision.