Business ethics challenge

The DQ for this week is the ethics challenge from Chapter 10:
Frances Chance owns a small business and manages the accounting. Her company has purchased some new
equipment by borrowing funds. She is required to submit financial statements to the bank so the lender can
monitor the financial well being of the company to determine if the interest rate on the loan will be increased.
Chance believes profits will decline this year. The current depreciation rule being used for asset additions
assumes assets are in use on the first day of the month nearest the purchase date. Chance decides to change
the depreciation rule so that all asset additions are considered to be in use on the first day of the following
month.
Be sure to include the following in your original response which should be at least four paragraphs with at least
five sentences each:
A brief description of the scenario in your own words.
What decisions must managers make when applying depreciation methods.
Is Chance's new rule an ethical violation or a legitimate decision in computing depreciation?
What will be the impact of this new depreciation rule on Chance's profit margin?