E1-4 The following situations involve accounting principles andassumptions.1. Gr

E1-4 The following situations involve accounting principles andassumptions.1. Grossman Company owns buildings that are worth substantiallymore than they originally cost. In an effort to provide morerelevant information Grossman reports the buildings at marketvalue in its accounting reports.2. Jones Company includes in its accounting records onlytransaction data that can be expressed in terms of money.3. Caleb Borke president of Calebs Cantina records his personalliving costs as expenses of the Cantina.InstructionsFor each of the three situations say if the accounting method usedis correct or incorrect. If correct identify which principle orassumption supports the method used. If incorrect identify whichprinciple or assumption has been violated