You are the senior auditor responsible for the audit of the Commonwealth Corporation for the year ended December 31, 2019 and are at the client performing year-end audit procedures. The Commonwealth Corporation is a rapidly expanding processor of raw ore. You need to write a memo to your audit partner based on the results of your review. You wonder whether the financial statements of Commonwealth should be amended or if disclosure should be included for the following material events and transactions that took place after December 31, 2019: a. On January 3, 2020 the British Columbia government approved a plan to construct a highway and advised Commonwealth. As a result of this initiative, the government will expropriate a portion of Commonwealth's land, which it had intended to use in a warehouse expansion. The expropriation will likely occur in 2021. b. December 15, 2019, Commonwealth ordered a shipment of ore, FOB shipping point, which was en route at December 31, 2019. The shipments generally consist of 50 percent valuable ore and 50 percent invaluable filler. In compliance with GAAP, Commonwealth recorded an asset and liability at year-end. When the shipment was received, Commonwealth discovered that the shipment included 70 percent valuable ore and 30 percent invaluable filler Required: For each item above, answer the following questions: a) Is it a subsequent event, and if so, what type of subsequent event is it? b) If it is a subsequent event, what is the appropriate treatment in the financial statements? V Format U What is the appropriate treatment in the financial Subsequent event? If so, statements for the Scenario what type? subsequent event (if A Ea la x tv