Indicate in each case whether the item has been handled in accordance with generally accepted accounting principles. If so, indicate the key basic concept that has been followed. If not, indicate which concept has been violated and tell how the item should have been recorded or presented. 4. The equipment of Oak Towers Country Club has a book value (cost less accumulated depreciation) of $825,000. However, the equipment could not be sold for more than $650,000 today. The company's owner thinks that the machinery should nevertheless be reported on the balance sheet at $825,000 and depreciated over its useful life because the equipment is being used regularly in the business and it is expected to be used profitably for the next five years- the remaining useful life that is being used for depreciation purposes.