for early pay ness expects to be entitled to. If Nicolet offers cash discouis hcant cash discounts are a type of variable consideration.) nransaions drpertplant, and equipment. The accountants are having di holowing transactions during the fiscal year ended December 31, 2017 1. Kiwick Kopy bought equipment on January Identify concept or PICnz and Ng are acountants at Kwick Kopy Printers accountants at Kwick Kopy Printers. Kwick Kopy has not ade model for 1, 2017, for $80,000, including installation costs. The equiom using the double diminishing-balance prepare entries ife of five years. Kwick Kopy depreciates equipment value. It should not be depreciated but, expensed immediately, Czyz argues on for the year was $43,000. Since the company's profitis expected to be low this year, Czyz su ved without considerable damage, it Since the t as installed in our system cannot be re instead suggeu n to a year when there are higher profits equipment at a fire sale for $36,000. The equipment would normally have cost sso Cryz believes that the following entry should be made Equipment 36,000 Cash 14,000 Gain on Fair Value Adjustment of Equipment $30,000 less than cost. month was paid in advance. Czyz believes that the following entry should be made on September 1 4 Cyye says that Kwick Kopy should carry its furnishings on the balance sheet at their liquidation value, which 5. Kwick Kopy rented office space for one year, effective September 1, 2017. Six months of rent at $3,000 per Rent Expense 18,000 6. Land that cost $41,000 was appraised at $60,000. Czyz suggests the following journal entry Land Gain on Fair Value Adjustment of Land 19,000 Ng disagrees with Czyz in each of the situations Instructions (a) For each transaction, indicate why Ng disagrees. Support your work definition of elements, qualitative characteristics, assumption, constraint, reco ment criteria. answer with reference to the conceptual frame gnition, and measure- (b) Prepare the correct journal entry to record each transaction. TAKING IT FURTHER Discuss the circumstances in which it is appropriate to recond ot Net income