and 7 th case is esquire company provides financial statements to external users every three years

CF (V4) WU LL I For each of the following 7 situations, in the space provided below: 2 each case; (1 Mark each) a) List the foundational principle (FP) and/or qualitative characteristic (QC) and/or enhancing characteristic (EC) of financial information that applies in b) State whether the FP, QC, or EC is being followed or violated; (1 Mark each) AND c) Briefly explain WHY/HOW do you think the FP, QC, or EC is being violated or followed. (1 Mark each) The following 7 situations are provided below: 1. Wagner Corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar. 2. Spooner Oil Company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. No mention of the change was included in the financial statements. The change had a material effect on Spooner's financial statements. 3. Cypress Manufacturing Company purchased machinery having a five-year life. The cost of the machinery is being expensed over the life of the machinery. 4. Rudeen Corporation purchased equipment for $180,000 at a liquidation sale of a competitor. Because the equipment was worth $230,000, Rudeen valued the equipment in its subsequent balance sheet at $230,000. 5. Davis Bicycle Company received a large order for the sale of 1,000 bicycles at $100 each. The customer paid Davis the entire amount of $100,000 on March 15. However, Davis did not record any revenue until April 17, the date the bicycles were delivered to the customer. 6. Gigantic Corporation purchased two small calculators at a cost of $32.00. The cost of the calculators was expensed even though they had a three-year estimated useful life