Al. Consider the following two independent cases: (a) Chloe Company is a trading business. Recently, the business has fallen into financial difficulty and is going to be liquidated soon. The auditors found that the assets of the company are valued at their historical cost. (b) Davidson Company Limited is a listed company. A pencil sharpener costing $80, with an estimated useful life of five years, was bought for office use. The whole amount was recorded in Pencil Sharpener account under non- current assets Required: Identify and explain the relevant accounting concept applying to each of the above cases. Determine whether the accounting treatment is appropriate and if not, suggest any adjustments that may be required