You and your team of auditors are examining the financial statements of Capilano Water Company (CWC) for the fiscal year ended June 30, 2016. It is October 11, 2016. During the audit, you identified the following issues (assume all amounts are material):
a. CWC’s draft financial statements show $100,000 of inventory of bottled water as of June 30, 2016. On August 17, 2016, it was discovered that the spring from which the company sources its water had been contaminated. Samples from the year-end inventory show that a quarter of it had been contaminated and is not suitable for sale.
b. On September 7, 2016, one of CWC’s water delivery trucks was destroyed in an accident. This truck had a value of $80,000 on the books of CWC as of June 30, 2016.
c. In February 2016, CWC purchased 1,000 shares of Royal Bank Corporation (RBC) at $60 per share. These shares are widely traded on the Toronto Stock Exchange and share prices are available on a daily basis. The share price on June 30, 2016, was $55, and as of October 11, 2016, the share price has further declined to $48.
d. You noted that the closing cash balance on the bank statement dated September 30, 2016, was $3,000, much lower than the $67,000 shown on the draft financial statements that you are auditing.

Required:
Using the table below, identify the accounting treatment that would be most appropriate for each of the four issues described above, and explain why that is the appropriate treatment.