BTN in w Flo Choi owns a small business and manages its accounting. Her company just finished a yearE large amount of borrowed funds was invested in a new building addition as well as in equip- nt sd fixture additions. Choi's banker requires her to submit semiannual financial statements so he can nitor the financial health of her business. He has warned her that if profit margins erode, he might raise erest rate on the borrowed funds to reflect the increased loan risk from the bank's point of view. knows profit margin is likely to decline this year. As she prepares year-end adjusting entries, she Choi decides day of the following month. (The previous rule assumed assets are in use on the first day of the month nearest to the purchase date.) to apply the following depreciation rule: All asset additions are considered to be in use on the first Required 1. Identify decisions that managers like Choi must make in applying depreciation methods. 2. Is Choi's rule an ethical violation, or is it a legitimate decision in computing depreciation? 3. How will Choi's new depreciation rule affect the profit margin of her business