Pape 99 E 1-12 Basic assumptions and principles LO1-7 through LO1-9 For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the accounting concept applied (if you agree) or violated (if you disagrec). 1. Wagnet Corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollat. 2. Spooner Oil Company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. No mention of the change was included in the finaneial statements. The change had a material effect on Spooner's financial statements. 3. Wei Manufacturing Company purchased machinery having a fiveyear life. The cost of the machinery is being expensed over the life of the machinery. 4. Rudeen Corporation purchased equipment for $180,000 at a liquidation sale of a competitor. Because the equipment was worth $230,000, Rudn valued the equipment in its subsequent balance sheet at $230,000. 5. Davis Bicyele Company received a large order for the sale of 1,000 bicyeles at $100 each. The customer paid Davis the entire amount of $100,000 on March 15. However, Davis did not record any revenue until April 17, the date the bieycles were delivered to the customet. 6. Ganesh Corporation purchased two small calculators at a cost of $32.00. The cost of the calculators was expensed even though they had a three-year estimated useful life. 7. Taboye Company provides financial statements to external users every three years