For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the accounting concept that is applied (if you agree) or violated (if you disagree). 1. XYZ does not adjust amounts in its financial statements for the effects of inflation. 2. During the year, the company purchased equipment through the issuance of common stock. The stock had a par value of $135,000 and a fair value of $450,000. The fair value of the equipment was not easily determinable. The company recorded this transaction as follows: Debit Equipment 135,000 Credit Common Stock 135,000. 3. XYZ Company sells farm machinery. Revenue from a large order of machinery from a new buyer was recorded the day the order was shipped. 4. The president of XYZ asked the company controller to charge miscellaneous expense for the purchase of an automobile to be used solely for personal use. 1 2 3 4 Agree/Disagree Assumption/Constraint/Accounting principle Arial For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph 14px !!! III al A I. :