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a. Ascension Health
b. General Motors
c. Time Warner Cable
Identify at least one researchable question for each of the following issues.
a. Stop and think. Your company has just paid in advance for 12 months of billboard advertising. The company must now determine how to record the cost of this advertising. What does your instinct tell you to do?
b. Now, perform research within the Codification to find guidance on this issue. List two Codification subtopics that you think are most relevant to this issue and provide a one-sentence summary for each. Assume this is not a direct response advertising cost. Also, assume ASC 340-20 does not apply.
Chapter 4 – Creating Effective Documentation (#1,3,7 in your text)
a. The fact that the issuer is a public company.
b. The key terms of the preferred stock, including its par value and any conversion or redemption features.
c. The anticipated size of the issuance, in dollars.
d. The date on which the issuance is expected to occur.
e. Background on the company and its primary sources of revenue.
f. The fact that the company entered into a similar transaction several years ago.
g. Detail about the counter-party (investor) who is expected to purchase a large share of the preferred stock issuance.
Company A is exchanging its patent for a building in Michigan, plus $750,000 cash, from Company B. Company B has taken out a loan for $750,000 from Sub Bank in anticipation of the exchange. Sub Bank is a wholly owned subsidiary of Parent Bank.
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