QUESTION2 Scenario I The President of Bill& Bill Inc., Vanessa Bill, has ordered Althea Bing, the Head of Accounting Department for her company pertaining to a recently acquired land. She instructed as to recond the land as its fair value of $350,000 instead of its cost $130,000, Vanessa conveyed that, I think we got an attractive package on the deal of the purchase. It is probably worth $350,000. Probably, showing the land at $350,000 will make our company look like a better investment when we try to attract new and potential investors in the future" Scenario 2 Tilly and Co, a tea manufacturer, has historically used FIFO for valuing its inventory. For the past few years, Tilly has become quite profitable and Tilly's accountant suggets that Tilly should change the FIFO method to LIFO inventory system. This is to minimize taxable income The company changes the method to LIFO and suddenly in the year of 2017, Tilly's revenue is extremely low and Tilly is trying to show a profit to get another bank loan. Tilly asks his accountant to switch back from LIFO to FIFO REQUIRED: For each of the scenarios: a Describe and justify the most suitable accounting concept and convention to be applied and provide clear justifications as to the reasons of chosen concept and convention (12 marks) If your proposed concept and convention was not applied, how does this impact the b) accounting results? (12 marks) TOTAL: 24 marks)