if the government wishes to regular a natural monopoly so that it produces an efficient level of output it would be

Price capping, Regulation of mergers, breaking up existing monopoly

Explanation:

Price capping us setting regulations on the price that utility provider can charge. The cap is set according to several economic factors such as price cap index, inflation. Also the government would regulate mergers and break existing monopolies

a. Using the straight-line method, compute the annual depreciation that would have been charged from 1994 through 2003.

depreciable value = $2,320,000 - $68,800 = $2,251,200

annual depreciation expense = $2,251,200 / 40 years = $56,280

b. Compute the annual depreciation that would have been charged from 2004 through 2022.

annual depreciation expense = $56,280 + [($580,000 - $23,200) / 30 years] = $74,840

c. Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated.

no journal entry required, the carrying value is the same, only the annual depreciation expense will change

d. Compute the annual depreciation to be charged, beginning with 2022.

accumulated depreciation until 2022 = (10 years x $56,280) + (18 x $74,840) = $1,909,920

carrying value = ($2,320,000 + $580,000) - $1,909,920 = $2,900,000 - $1,909,920 = $990,080

depreciable value = $990,080 - $68,800 - $23,200 = $898,080

annual depreciation = $898,080 / 32 years = $28,065