HOMEWORK1 1. For each of the three situations below, stato if the accounting assumption or principle used is correct or incorrect. If correct, identify which principle or assumption supports the method used. If]ncorrect, identify which principle or assumption has been violated. Correct/Incorrect Principle/Assumption (A) A company owns buildings that are worth substantially more than thoy originally cost. In an effort to provide relevant information, the company reports the buildings at market value in its financial reports. (B) A company includes in its accounting records only transactions that can be expressed in terms of money, (C) A company purchases a machine that will be used to manufacture its products for the next 10 years. The company expenses the entire cost of the machine in year 1