subject financial statement analysis Act 450

QUESTION 5-(20 pts) Below is the cost and accumulated depreciation information for the only building of Company A that was purchased on January 1, 2019. In the end of 2019, company decided to use straight line depreciation, but changed the method and started to use double declining method at the end of 2020. 31 Dec 2020 31 Dec 2019 Building 100,000 100,000 (-) Accumulated Depreciation (43,000) (5,000) 57,000 95,000 Answer the following questions. a) What is the useful life of the building? Show your calculation. (5 pts) b) Why would company make this change? (7.5 pts, 75 words) c) If you were an analyst, before starting financial analysis, what adjustments would you like to make on 31 Dec 2020 Balance Sheet and Income Statement of Company A in the context of accounting analysis. Support your comments with calculations. (7.5 pts) - Provide two of the possible adjustments, and tell the names of the accounts, and indicate the amounts you like to adjust