Correcting errors in income statement transactions Dragon Group International Limited Dragon Group), a diversified electronics firm headquartered in Singapore, reported the following income statement information for its year ended December 31, 2007, based on its financial reports for fiscal 2007. Dragon Group applies Singapore financial reporting standards and reports its results in thousands of Singapore dollars ($). In answering this problem, assume Dragon Group uses either U.S. GAAP or IFRS: for purposes of this problem, this choice will not matter.
Assume that Dragon Group supplied additional information about the following six hypothetical transactions or events that happened during 2007, with all monetary amounts reported in thousands of Singapore dollars.
a. In January 2007, Dragon Group collected $1,000 cash from customers who had purchased items on credit in December 2006. Dragon Group had delivered the items by mid-December 2006. Dragon Group recognized January revenues of $l.000.
b. On February 2, 2007, the firm agreed 10 supply a customer with $25,000 of high-end electronics products. On this date, Dragon Group recognized revenues of $25.000 and cost of sales of $8,000 reflecting the carrying value of the high-end inventory. Dragon Group delivered on the agreement in September 2007.
c. On June 4, 2007, Dragon Group sold some land it had purchased many years earlier, prior to the boom in the real estate market. The carrying value of the land on the books was $454, and Dragon sold it for $7,000. Dragon Group recorded a gain on the sale of the land of $6,546.
d. During 2007, the firm incurred $1,232 in development costs associated with a new product that the firm had developed: the firm expensed these Costs. The product design and manufacture is nearly complete. The firm€™s auditor has decided that Dragon should have capitalized the development costs.
e. In December 2007, Dragon Group recognized interest income on investments in marketable securities of $230. The firm included this income in sales revenues.
f. Dragon Group spent $15,000 for advertising in 2007. Because Dragon Group man-believed the advertising would result in future income, it capitalized the expenditures as an asset. No amortization of the asset has yet taken place. For each transaction, determine whether revenues and expenses are over- orunderstated.

2007 $ 450,830 Sales... Cost of Sales (416,378) $ 44,452 Gross Profit Other Income. 1,558 Selling and Marketing Costs (20,714) General and Administrative Costs (20,254) Development Costs (1,232) 2007 Finance Costs, net.. (6,692) Gain on Sale of Land 6,546 Share in Results of Associated Companies Profit Before Tax... (2) $ 3,662 (1,094) $ 2,568 (567) $ 3,135 Taxation Profit (Loss)..... Portion af Profit Owned by Minority Interests Portion of Profit Owned by Shareholders.