A2 The following events were occurred in Giant Bicycle Company in 2019: (1) The accountant changed the depreciation method for machinery from straight-line method to unit-of-output method to improve the profit for the year. The depreciation expense for the year under straight-line method and unit-of output method were $52,000 and $18,000 respectively. (2) Giant Bicycle Company received a large order for the sale of 2,000 bicycles at $550 each. 1,500 bicycles were delivered to the customers in 2019. The whole payment was received from the customer on 31 January 2020. The accountant has recorded the revenue amounted to $825,000 in 2019. (3) The owner of Giant Bicycle Company has earned interest income of $16,000 from his private investments. The accountant reported the interest revenue in the income statement of the Company. (4) The accountant included the information about the due date of notes payable in the notes to the financial statements. Required: (a) Please refer to the accounting treatment in event (1) to (4) above. State "Yes" if the event has violated any accounting principle, and name the principle. State "No" if the event has NOT violated any accounting principle, and name the principle that it has applied. State "Yes" or "No" (1) (2) (3) (4) Accounting principle (8 marks) (b) Based on your answers from (a), how much is the total amount of profit being overstated or understated in 2019 if there is/are any violations of accounting principles. (2 marks) - End of Section A