Assume that Pappas Company commenced operations on January 12010 and it was gran

Assume that Pappas Company commenced operations on January 12010 and it was granted permission to use the same depreciationcalculations for shareholder reporting and income tax purposes. Thecompany planned to depreciate its fixed assets over 15 years butin December 2010 management realized that the assets would last foronly 10 years. The firms accountants plan to report the 2010financial statements based on this new information. How would thenew depreciation assumption affect the companys financialstatements?