For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree). 1. Wagner Corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing pow 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 3. Cypress Manufacturing Company purchased machinery having a five-year life. The cost of the machinery is 4. Rudeen Corporation purchased equipment for $180,000 at a liquidation sale of a competitor. Because the 5. Davis Bicycle Company received a large order for the sale of 1,000 bicycles at $100 each. The customer paid 6. Gigantic Corporation purchased two small calculators at a cost of $32.00. The cost of the calculators was 7. Esquire Company provides financial statements to external users every three years material effect on Spooner's financial statements being expensed over the life of the machiner equipment was worth $230,000, Rudeen valued the equipment in its subsequent balance sheet at $230,000 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. expensed even though they had a three-year estimated useful life Situation Agree/Disagree Assumption/Constraint/Accounting principle istorical cost (original transaction value) principle ull disclosure principle sagree 2. sagree Agree sagree Agree Agree istorical cost (original transaction value) principle Expense recognition 6 sagree