Information: Sauder purchased a new storage facility on December 1, 2021. The new building cost $690,000. A new member of the accounting team recorded depreciation on the new facility using the straight line method. The manager was impressed with his hard work, since he used the method correctly and even appropriately adjusted for partial year depreciation. However, she had to remind him that Sauder uses the sum-of-the- years (SYD) method for buildings. Unfortunately, the mistake in method wasn't corrected before the financial statements were created. At the time of the purchase, the operations manager estimated that the new facility would be used for 5 years and would have a $17,300 salvage value. Sauder's management would like to know the effect of your adjustment on the following ratios: Asset Turnover (Net Sales / average total assets) Current Ratio . ROA Assignment: Calculations 1. Make the appropriate journal entries, if any, to account for the change in depreciation method (including any necessary changes to income tax expense) on the new facility ONLY (the rest of the depreciation was appropriately recorded). 2. Make any necessary changes to the financial statements. Critical Thinking 3. Calculate each of the required ratios using the original values (before any changes) and the updated values (after your changes). 4. In practice, most companies use the straight-line depreciation method, typically without any salvage value. How do you think companies justify this decision to their owners and creditors? Do you agree with using only this one method? Defend your answer. 5. After looking over the numbers, you believe that would be better off following the more conservative option of reporting this asset using an accelerated depreciation method (SYD or DDB). Provide two (2) arguments that you could use to convince the management team that your plan is the most appropriate