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Below are two independent revenue recognition scenarios. Respond to the requirements below separately for each scenario. Scenario 1: Hockeyzine Inc. (4.5 marks) Every August, Hockeyzine Inc. publishes a fantasy hockey league magazine which is sent to various magazine retailers in Canada for sale. The standard sales contract allows these retailers to return any unsold magazines at the end of November each year. At the end of November, the retailers are responsible for submitting a report indicating how many magazines were sold. At this time, they will return the unsold goods and remit a cheque for payment to Hockeyzine for $3.50 per magazine sold. Hockeyzine records revenue on the magazines when they are shipped to the retailers in August at which point the magazines are removed from Hockeyzine's inventory records. The company applies ASPE. Scenario 2: Cozy Cabin Co. (6.0 marks) Cozy Cabin Co. (\"Cozy\") manufactures and sells prefabricated ski chalets to ski resorts across Canada. Slippery Slopes ("Slopes\") placed an order for 50 ski chalets to take advantage of a volume discount. Slopes is currently in the process of preparing one of their mountains to allow for construction of the ski chalets. They do not have storage space on site to store the chalets while they prepare the mountain; therefore, they requested that Cozy store the chalets and provide them a delivery schedule. Slopes provided Cozy with insurance coverage for the chalets and acknowledged that they were taking legal title of the chalets immediately. Cozy stores the chalets in a separate part of the warehouse and specifically identifies them as belonging to Slopes. The chalets are customized and cannot be sold to other customers. Cozy invoiced Slopes once the chalets were complete and ready for shipment and required payment within the customary 30day term. Cozy recognized revenue on this transaction once the invoicing process was complete. The company reports under IFRS. Required: Start this question on a new page. Show all analysis to get full marks. a) Clearly state if you think the company's current revenue recognition policy is appropriate or not appropriate. Support your answer by referencing to relevant handbook principles and applying case facts. b) If you believe the company's current policy is not appropriate, state what changes the company should make to their policy