The conceptual framework for financial reporting identifies the qualitative characteristics and foundational principles that make accounting information useful. For the following situation, indicate: (a) the name of the foundational principle; and (b) whether the company is complying with the foundational principle and how you know that this is the case. Situation: The Red Wagon Toy Company (RWTC) reports their property, plant, and equipment at cost, even though cost is significantly different from the liquation values for these assets. RWTC's liquid assets greatly exceed its liabilities. Management has just begun implementing the corporation's new 5-year strategic plan