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3. Six months ago, you closed out your business. Now, a person has expressed an interest in acquiring the business. The potential buyer requests a current balance sheet, but you provide her with the one that was prepared just prior to closing. a. Will the balance sheet be accepted by the buyer and her accountant? b. Which GAAP(s) affect this situation? Explain. 4. Martha Higgins is currently trying to borrow some money from the bank. She has listed her personal automobile ($25 000) on the business balance sheet to make the statement look more attractive to the banker. a. Is this a reasonable thing to do? b. Which GAAP(s) affect this situation? Explain. 5. The manager of a business has heard that the business might be sold and that he might lose his job as a result. When preparing a balance sheet for the owner, the manager values everything as low as possible in order to discourage the prospec- tive buyer. He claims that this practice is allowed by the principle of conservatism. a. Is the manager correct in his claim? b. Which GAAP(s) affect this situation? Explain. 6. A figure of $25 000 for computerized office equipment appears on a company bal- ance sheet. Recently, better quality equipment has been developed and put on the market. However, the existing equipment still does an adequate job for the com- pany, and the company has no intention of replacing it. a. Should the equipment figure be eliminated because it represents obsolete equipment? b. Which GAAP(s) affect this situation? Explain