1. Interesting problem, but what is your question? Where is your solution?

You do
not show any of your work so it is not possible to tell you if it is correct.
Presumably you studied this material and have some idea what to do. This is not
a free homework solving service. You learn this by doing it. No one will help you
when you get a similar problem in a test.
Assigning your work to others to solve for you is not appropriate. Students who
do that do not belong in business school.
At least Jana can explain to Duffy that this would violate accounting principles
and would result in an adverse opinion on the financial statements.
2.