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a. Prepare the amortization schedule and journal entries for AA under both the ASC 840 and the ASU 2016-02 (ignore Exhibits 4 and 5a-b, focus
a. Prepare the amortization schedule and journal entries for AA under both the ASC 840 and the ASU 2016-02 (ignore Exhibits 4 and 5a-b, focus on what you learned in class). b. What are the effects of transitioning from the old rule to the new rule on cash flows and net income (for this transaction only) over the four years? c. In 2018, how does the ASU 2016-02 affect AA's assets, debt, debt-to-equity ratio, and ROA (see Exhibits 1a and 1b)
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