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8. After completing its preliminary financial statements for 2012, Cannon Inc. found a mistake in computing its straight- 1 point line Depreciation Expense. After fixing the mistake, Cannon's Depreciation Expense was now $10,000 higher. Cannon is a US company with a 35% Federal Statutory Tax Rate. How did the $10,000 increase in Depreciation Expense affect Net Income for 2012? Net Income dropped by $6,500 O Net Income dropped by $3,500 O Net Income increased by $10,000 O Net Income increased by $3,500 O Net Income dropped by $10,000