Part II: Conceptual Framework and Accrual Accounting (15 points) 1. Presented below are three of accounting procedures and practices at Ramirez Corp. For each of trese items, match exactly one item (assumption, principle, quality, or modifying convention) that 15 violated from the list below. (It is acceptable to use the same item for multiple responses, but Please note that listing multiple items for one response will not receive partial credit.) (6 points) Economic entity assumption Going concern assumption Monetary unit assumption Periodicity assumption Historical cost principle Verifiability characteristic Consistency characteristic Fair value principle Understandability characteristic h. i. Because the company's income is low this year, a switch from LIFO inventory costing to FIFO inventory costing method is made this year. - ii. The owner of Ramirez Corp. purchased a new home computer for personal use with company money, charging miscellaneous expense. - iii. Land, that cost $400,000, is reported at its current market value of $450,000. 2. ABC company maintains its records cash basis of accounting during the year and converts them to accrual basis at the end of the year through adjusting entries. Whe preparing the financial statements of ACC for the year ended December 31, 2019 on accrual basis, you discover the following: a. ABC Company sublet a portion of its warehouse for a one-year period for an annual rental payment of $72,000, beginning on August 1, 2019. The tenant, XYZ company paid the entire year's rent in advance, on August 1, 2019, which ABC recorded as a credit to Rent Revenue. b. ABC Company paid $24,000 on May 1, 2019 for a two-year insurance policy and recorded the entire amount as Insurance Expense. Required i. Prepare the adjusting entries (if any) related to parts a and b. (6 points) The cash basis net income reported for 2019 is $180,000. Determine the accrual basis met income for 2019. (3 points)