You are the CFO of Instagram Inc. The CEO has been informed that Facebook Ltd. Is looking at acquiring your company. The Board of Directors has commented that a takeover would be bad for the workers and the community due to Facebook's work practices. They have suggested that Instagram Inc. should minimize income as much as possible this year to discourage a takeover. Recommend and explain your accounting policy choices to the board using the following information gathered from the accounting staff. Instagram purchased a piece of equipment during the year which represents 40% of your property, plant and equipment. Inventory costs are decreasing. Accounts receivable collections in the past have been 98% of credit sales or 93% of accounts receivable. This year's credit sales were $10,500,000 and accounts receivable at year end is $2,500,000. There is $750,000 of research and development costs that could be argued as research or development. Instagram was sued by users for $10,000,000, due to its addictive properties