Apply accounting concepts. (SO 1, 2, 6) AP Bes this indicate that the mine may be impaired? Why or why not? E9-12 An accounting co-op student encountered the following situations at Chin Company: 1. During the year, Chin Company purchased land and paid legal fees on the purchase. The land had an old building, which was demolished. The land was then cleared and graded. Construction of a new building will start next year. All of these costs were included in the cost of land. The student decided that this was incorrect, and prepared a journal entry to put the cost of removing the build- ing and clearing and grading the land in land improvements and the legal fees in legal fee expense. 2. The student learned that Chin is depreciating its buildings and equipment, but not its land. The stu- dent could not understand why land was not included, so she prepared journal entries to depreciate all of the company's property, plant, and equipment for the current year end. 3. The student decided that Chin's amortization policy on its intangible assets is wrong. The company is currently amortizing its patents but not its trademarks. The student fixed that for the current year end by adding trademarks to her adjusting entry for amortization. She told a fellow student that she felt she had improved the consistency of the company's accounting policies by making these changes. 4. One of the buildings that Chin uses has a zero carrying amount but a substantial fair value. The co-op student felt that leaving the carrying amount at zero did not benefit the financial information's users- especially the bank--and wrote the building up to its fair value. After all, she reasoned, you write down assets if fair values are lower. She feels that writing them up if their fair value is higher is yet another exam- ple of the improved consistency that her employment has brought to the company's accounting practices. Instructions Explain whether or not the co-op student's accounting treatment in each of the above situations follows generally accepted accounting principles. If it does not, explain why and what the appropriate accounting treatment should be