7. Short Answer Questions (6 points) Required: For each of the scenarios, identify and describe the appropriate Accounting Principle(s). a. Stark Enterprise bought a piece of land in 2014 for $20,000. Because of inflation, the land is now worth $35,000. But the company does not adjust its statements and records the land at $20,000. b. Shield Ltd has a pending lawsuit which could lead to the company paying huge fines. Shield Ltd mentions this in its notes to financial statements. C. Hydra Inc capitalizes and depreciates its property plant and equipment over the periods that it benefits