1) Johnson Electronics has requested your advice on when assets need to be classified as current assets. (2) Baxter Controls has requested your advice on when a contingent liability should be recorded as a liability. FYI: Here is the first row of Exercise (1). (See page 25 Figure 2-3 Eight Elements of Reasoning- purpose, issue, information, concepts, assumptions, interpretation, implications, conclusion) (a) Purpose Respond to the clients request for information. SEE book Accounting & Auditing Research Tools & Strategies, 7th Edition