Question 1 The five circumstances listed below were identified during an audit of the Alpha Company. 1. When a $27.50 tool was purchased, the company recorded it as an expense, despite the fact that it had a 10-year estimated useful life and no residual value. 2. Over a five-year period, the company switched from FIFO to LIFO to FIFO for the same inventory items. 3. The company recognizes depreciation using the double-declining balance method, whereas its major competitors use the straight-line method. 4. The company has a policy of straight-line depreciating plant and equipment over a period of time that is 50% longer than the most reliable useful-life estimate. 5. The company reports fixed assets on a net basis for financial reporting purposes, without providing information on the balance of accumulated depreciation. Required: a. Determine the qualitative accounting information characteristic that is directly involved in each situation. b. Would we recommend that the company change its accounting policy in situations 1 through 5?