Williams-Santana Inc is a manufacturer of high-tech Industrial parts that was started in 2009 by two talented engineers with little business training. In 2021, the company was acquired by one of its major customers. As part of an Internal audit, the following facts were discovered. The audit occurred during 2021 before any adjusting entries or closing entries were prepared. a. A five-year casualty Insurance policy was purchased at the beginning of 2019 for $33,000. The full amount was debited to insurance expense at the time. b. Effective January 1, 2021, the company changed the salvage value used in calculating depreciation for its office building. The building cost $604.000 on December 29, 2010, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $120,000. Declining real estate values in the area Indicate that the salvage value will be no more than $30,000. c On December 31, 2020, merchandise Inventory was overstated by $23,000 due to a mistake in the physical Inventory count using the periodic Inventory system d. The company changed Inventory cost methods to FIFO from LIFO at the end of 2021 for both financial statement and income tax purposes. The change will cause a $940.000 Increase in the beginning Inventory at January 1, 2022 Williams-Santana Inc is a manufacturer of high-tech Industrial parts that was started in 2009 by two talented engineers with little business training. In 2021, the company was acquired by one of its major customers. As part of an Internal audit, the following facts were discovered. The audit occurred during 2021 before any adjusting entries or closing entries were prepared. a. A five-year casualty Insurance policy was purchased at the beginning of 2019 for $33,000. The full amount was debited to insurance expense at the time. b. Effective January 1, 2021, the company changed the salvage value used in calculating depreciation for its office building. The building cost $604.000 on December 29, 2010, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $120,000. Declining real estate values in the area Indicate that the salvage value will be no more than $30,000. c On December 31, 2020, merchandise Inventory was overstated by $23,000 due to a mistake in the physical Inventory count using the periodic Inventory system d. The company changed Inventory cost methods to FIFO from LIFO at the end of 2021 for both financial statement and income tax purposes. The change will cause a $940.000 Increase in the beginning Inventory at January 1, 2022