For each of the following situations, state whether you agree or disagree with the financial reporting practice employed, and briefly explain the reason for your answer. For example, explain the principle or assumption being violated.

1. Tilden Corporation recently had a patent appraised and increased its book value by $3 million.

2. Reiss Corporation paid for the personal expenses of its chief executive officer and charged travel expense.

3. In the second quarter of 2021, Leonardo, Inc. paid $6,000 for two-year insurance coverage. Leonardo recorded the entire expenditure as an expense in 2021.

4. In the financial statements of the Richland Pharmaceutical Company, a pending lawsuit against the company was described in a note.

5. The Waverly Corporation, a company whose securities are publicly traded, prepares monthly, quarterly, and annual financial statements for internal use but disseminates to external users only the annual financial statements.