1. Prepare an appropriate response to each of the following items (22 points) A) What is the EITF and what is its purpose in the standard setting process? B) Explain why the demand for accounting information arises from the informational needs of various stakeholders. Within your response identify two stakeholders and explain the information that each stakeholder would like to see in an entity's financial statements C) Explain and provide an example of how the FASB's conceptual framework is needed in formulating standards on controversial topics. 2. Provide an appropriate response to the following four items. (28 points) A) Jeff Brown is evaluating two companies for future investment potential. Jeff's task is made easier because both companies use the same accounting methods when preparing their financial statements. Which characteristic of accounting information provides this benefit to Jeff? Explain your selection B) Discuss how materiality is featured in the FASB's conceptual framework C) Provide an example of a violation of the stable monetary unit assumption and how it affects the quality of financial statement information D) The city of Anchorage sold land for its $1.400.000 appraised value to the Big Bear Oil Company on June 1, 2022. that originally cost the city $950,000. On December 31, 2022. the land's value was estimated to be $1.850.000. On Big Bear's December 31, 2022 Balance Sheet: 1) at what value will the land be reported, and 2) explain the theoretical support for your decision. 3. Presented below are accounting procedures that are being used by Pers Hoop Shop Inc. Identify if it is an appropriate procedure and your theoretical support for that judgment (10) points) A) The policy of Pers Hoop Shop is to use the straight-line depreciation method for financial statement purposes and the double-declining balance method for tax purposes. In 2021, the bookkeeper used the double-declining method for both financial statement and tax purposes. Depreciation for 2020, 2021, and 2022 has been reported in the firm's income statement using the straight-line method By On June 25, 2021 the company filed a lawsuit against a competitor for trademark infringement. The company is asking the court to prevent the competitor from using an advertising logo in the future and for damage damages of $1,000,000 ($40,000 to cover profits from lost sales and $960,000 punitive). The jury returned a verdict favorable to Pers Hoop Shop on March 2, 2023 awarded damages of $650,000. On March 6, 2023, the defendant fied its appeal of the verdict. Pers Hoop Shop's attorney indicated there is a 85% probability that the appeals court will uphold the jury verdict. The company did not include the damage award in its financial statements for fiscal 2022 4. Selected balance sheet data for Executive Industries are as follows: Hem Equipment Notes Receivable, due June 1, 2024 (remaining proceeds from equipment sale) Loan Payable... Unearned Rent.. Prepaid Prepaid Insurance. Accumulated Depreciation. 12/31/21 250,000 12/31/22 200.000 24,500 120,000 1,400 1,000 600 1,300 20.000 25.500 Selected data for the fiscal year ended December 31, 2022 is presented below. Interest Revenue.... Cash received from Fixed Asset sales. Collections on accounts receivable. Insurance expense. Depreciation Expense $ 1,225 120,000 395.000 4.500 15,000 Lo