Marietta Corp. had the following reporting issues during the year:

For each of the situations, identify 

(a) the assumption or principle involved, and (b) whether it is being followed correctly or has been violated.

fill in the blank by choosing between the following: fair value basis, historical cost basis, cost constraint, timeliness, verifiability, growing concern.

A. Land with a cost of $208,000 that is intended to be used by the company as a building site was reported at its current value of $260,000.

1. The _______ of accounting is involved in this situation.

2. The _______ of accounting has been ____(violated or followed)______

B) A surplus parcel of land with a cost of $150,000 intended for resale in the near future is reported at its current value of $160,000.

3. The ______ of accounting is involved in this situation.

4. The _______ principle has not been ____(violated or followed)______

C) The president of Marietta, Deanna Durnford, decided it wasn’t necessary to classify assets and liabilities as current and non-current because she expects to operate the company for only another 10 years.

5. The _______ of accounting is involved in this situation.

6. The _______ assumption has been ____(violated or followed)______