Instructions Identify by number the accounting assumption, principle, or constraint that describes each situa- tion below. Do not use a number more than once. (a) Requires recognition of expenses in the same period as related revenues. (b) Indicates that market value changes subsequent to purchase are not recorded in the accounts. (c) Is the rationale for why plant assets are not reported at liquidation value. (Do not use histor- ical cost principle.) (d) Indicates that personal and business record keeping should be separately maintained. (e) Ensures that all relevant financial information is reported. (f) Assumes that the dollar is the "measuring stick" used to report on financial performance. (g) Requires that the operational guidelines be followed for all significant items. (h) Separates financial information into time periods for reporting purposes. (i) Benefits of the disclosure are less than its cost. EAP-4 Consider the following transactions of Parolini Company for 2011. 1. Leased office space to Easley Supplies for a 1-year period beginning September 1. The rent of $24,000 was paid in advance. 2. Sold a 6-month insurance policy to Orosco Corporation for $8,000 on March 1. 3. Received a sales order for merchandise costing $9,000 and a sales price of $14,000 on December 28 from Gutierrez Company. The goods were shipped FOB shipping point on December 31. Gutierrez received them on January 3, 2012. 4. Signed a long-term contract to construct a building at a total price of $1,600,000. Total esti- mated cost of construction is $1,200,000. During 2011, the company incurred $300,000 of costs and collected $330,000 in cash. The percentage-of-completion method is used to recognize revenue. 5. Had merchandise inventory on hand at year-end that amounted to $160,000. Parolini Company expects to sell the inventory in 2012 for $190,000. Determine the amount of revenue to be recognized. (SO 5)