The following are independent situations.Discuss if the items in each situation is acceptable and why or why not:

1.Milky Way Galaxy Ltd.is seeking a new investor to help the company's current cash flow situation.To make their financial situation look better, the CEO would like to record revenues of clients that are still pending for 2019.Expected delivery of goods is expected to take place in 2020 when the product is ready.

2.Ootsa Landing has decided to delay annual equipment maintenance due to costs being higher than expected in the year.Maintenance has been delayed until early next fiscal year.

3.Party Favors Ltd. has just hosted a large event at the end of the fiscal year.The event was estimated to cost $10,000 but spending went over budget with an actual cost being $15,000.The budget accountant proposes that management only record $10,000 of the costs with the remaining costs to be recognized in the new fiscal year.

4.ABC Company has developed a new software program that is estimated to increase future sales by 5% annually.The company has decided to capitalize the costs of the program.