Assume that you are an independent CCA performing audits of financial statements. In the course; of your work, you encounter the following situations: a) Standard Magazine receives most of its revenue in the form of 12-month subscriptions. Even though this subscription revenue has already been received in cash, the company's controller defers recognition in the income statement; the revenue is recognized on a monthly basis as the monthly issues of the magazine are mailed to subscribers. b) Due to the bankruptcy of a competitor, Tractors was able to buy plant assets worth at least Shs. 500,000 for the "bargain price" of Shs. 400,000. In order to reflect the benefits of this bargain purchase in the financial statements, the company recorded the assets at a cost of Shs. 500,000 and reported a Shs. 100,000 "gain on purchase of plant assets". c) Mugoya Development Company built a 500-unit furnished apartment complex. All materials and furnishings used in this project that had a unit cost of less than Shs. 300 were charged immediately to expense. The total cost of these items amounted to Shs. 7 million. d) In January 2017, the main plant of BIDCO Manufacturing Company was destroyed in a fire. As this event happened in 2017, no loss was shown in the income statement for 2017. However, the event was thoroughly disclosed in notes to the 2016 financial statements. e) In an effort to match revenue with all related expenses in an objective manner, Brentwood Company has established "useful life" standards for all types of expenditures For example; expenditures for advertising are amortized over 36 month the cost of employee training programs, 5 years; and research and development costs, 10 years. Required: Discuss each of the above situations. If you consider the treatment to be with generally accepted accounting principles, explain why. If you do not, which principle or principles have been violated, and also explain how the situation should have been reported. (15marks)