For each of the following cases, respond to the question asked and indicate the accounting principle or

Question:

For each of the following cases, respond to the question asked and indicate the accounting principle or concept that applies.
1. On March 15 of last year, Guice Inc. purchased land for $190,000, on which it planned to construct an office building. At the end of the year, the land had increased in value to $240,000. Nevertheless, Guice recognized no income as a result of the increase in value. Is this correct or incorrect accounting? Why?
2. Three years ago, Knott Company purchased a machine for $400,000. The machine is expected to have no . Nevertheless, Knott continues to keep the asset's cost in its accounting records and to depreciate the asset over its eight-year useful life. Is this correct or incorrect accounting? Why?
3. Rutland Company has decided to charge off as a loss the portion of its that it estimates will be uncollectible. The accounts involved resulted from the current year's sales. Is this correct or incorrect accounting? Why?
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...