discussion questions... i am in acct 2206 class

Answer the following questions and submit one finalized copy in the Team Discussion Assignment #1 Drop Box by the due date in the planning calendar: 1. For each of the independent situations below, list the foundational principle(s) and/or qualitative characteristic(s) of financial information that has been violated. 3. Duffee Inc. decides that it will be selling its subsidiary, Only Inc., in a few years. Duffee has excluded Only's activities from its consolidated financial results. b. Zoe Corporation expensed the purchase of new manufacturing equipment. c. A large lawsuit has been filed against Moony Corp. Moony has recorded a loss and related estimated liability that is equal to the maximum possible amount that it feels it might lose. Moony is confident, however, that either it will win the suit, or it will owe a much smaller amount 2. AMAC Industrial would like to determine the fair value of their manufacturing facility in Alberta. The facility consists building and manufacturing equipment. The cash flows that they anticipate in their valuation process are not certain. They plan to use a discounted cash flow model to value the property. a. Explain the two discounted cash flow models. b. Identify which you would recommend and why. 3. Gale Construction was awarded a contract to construct two major freeways in Edmonton at a total contract price of $ 10,000,000. The estimated total costs to complete the project were $8,000,000, and it is expected to take two years. Using the percentage-of-completion method: a. Prepare the journal entry to record construction costs of $ 4,400,000 for the first year. b. Prepare the journal entry to record progress billings of $5,000,000 for the first year. c. Prepare the journal entry to recognize the revenue and gross profit for the first year. d. What balances are left on the balance sheet at the end of the first year and what do they tell the financial statement users? Debit Credit 3. Gale Construction was awarded a contract to construct two major freeways in Edmonton at a total contract price of $ 10,000,000. The estimated total costs to complete the project were $ 8,000,000, and it is expected to take two years. Using the percentage-of-completion method: a. Prepare the journal entry to record construction costs of $ 4,400,000 for the first year. b. Prepare the journal entry to record progress billings of $ 5,000,000 for the first year. 1 c. Prepare the journal entry to recognize the revenue and gross profit for the first year. d. What balances are left on the balance sheet at the end of the first year and what do they tell the financial statement users? Debit Credit