A2 The following events were occurred in Great Motorcycle Company in 2019: (1) Great Motorcycle Company received a large order for the sale of 200 motorcycles at $15,000 each. 165 motorcycles 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 $2,475,000 in 2019. (2) The accountant changed the depreciation method for machinery from unit-of-output method to straight-line method to improve the profit for the year. The depreciation expense for the year under unit-of-output method and straight-line method were $156,000 and $54,000 respectively. (3) The accountant included the information about the due date of bank loan in the notes to the financial statements. (4) The owner of Great Motorcycle Company has earned interest income of $48,000 from his private investments. The accountant reported the interest revenue in the income statement of the Company. 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