Exercise 14.1 * Applying accounting principles and concepts. Objectives 14-5, 14-6 For each of the following cases, respond to the question and indicate the accounting principle or concept that applies. 1. Williamson, LLC, paid insurance premiums of $8,400 on December 1, 2019. These premiums covered a two-year period beginning on that date. What amount, from this payment, should the corporation show as insurance expense for the year 2019? What accounting principles, conventions, or assumptions support your answer? 2. Taylor Moore buys and sells real estate. On December 31, 2019, her inventory of property included a tract of undeveloped land for which she had paid $900,000. The fair market value of the land was $1,000,000 at that date. How much income should Moore report for 2019 in connection with this land? Why? 3. Madison Building Company signed a contract with a customer on November 1, 2019. The contract called for construction of a building to begin by December 31, 2019, and to be completed by December 31 , 2020. The contract price was $9.0 million. Madison estimated that the building would cost $6.0 million. On November 15, 2019, the customer was required to make an advance payment of $1,000,000. No work was done on the project until January 2020. How much income from the project should Madison report in 2019? Why