Marietta Co. had three major business transactions during 1998:

(a) Merchandise inventory with a cost of \(\$ 208,000\) is reported at its market value of \(\$ 260,000\).

(b) The president of Marietta Co., George Winston, purchased a truck for personal use and charged it to his expense account.

(c) Marietta Co. wanted to make its 1998 income look better, so it added 2 more weeks to the year (a 54 -week year). Previous years were 52 weeks.

\section*{Instructions}

In each situation, identify the assumption or principle that has been violated, if any, and discuss what should have been done.