Furniture and Fixtures When the company first started in 2018, it purchased furniture and fixtures for $650,000. At the time of purchase, it was estimated that the furniture and fixtures would have a useful life of 20 years but no residual value. The company uses the straight-line method for depreciation. Harry is known for making changes to the companys policy. Harry did not think that the existing furniture and fixtures were consistent with the companys brand and image. In 2021, Harry directed Meg to amend the useful life to 8 years using double-declining balance method. He also instructed Meg to revalue the furniture and fixtures to $200,000 in 2021. Prior to this, the furniture and fixtures were recorded at historical cost. No impairment was ever done even though there were signs of physical damage to the furniture and fixtures in recent year 2021.

Provide Analysis and report about:

1. Accounting Policy violated.

1. Correct Journal Entry and Calculations

1. Adjusting Journal Entries (for year 2021)

1. Impact to financial statements

1. Problems you see arising based on DRLinks perspective as the potential buyer.