After receiving the seller’s transfer disclosure statement, buyer clark rivers is not satisfied that all has been revealed. he’s heard rumors that a previous tenant died of aids inside the very home he would like to buy. clark demands to know if this is true, since it was not mentioned on the disclosure statement. which of the following is the appropriate legal response the broker must give to clark’s query? a. "yes, this is true. a previous tenant, who lived and died here two years ago, did have aids."b. "i’m sorry, but the transfer disclosure statement covers all material facts that must be disclosed, and a person having aids is not a material fact, whether or not it would be applicable in this situation."c. "i’m sorry, but i am not permitted to answer this question, as it could be a potential civil rights violation, under the federal and state fair housing laws."d. both b and c.

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar. 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 financial statements. the change had a material effect on spooner's financial statements. cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery. rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles 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 bicycles were delivered to the customer. gigantic 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. esquire company provides financial statements to external users every three years.