Assume that you have been hired as a consultant by Mary Grace to help her and Omar Daniel. She has asked you for your help on the GAAP income statements and the legal issues arising from the lease cancellation. Please write a business report for Ms. Grace using the case writing guidelines and report format guide from the Gateway website. Please incorporate material regarding the following questions:

Q. 1. Compute the net income per crocodile assuming that only one crocodile was caught, sold, and collected on in this year. Assume the costs of shipping the 600 crocodiles from Southeast Asia to the State of Gould is part of the $390,000 cost of catching them. The $100 shipping cost is the cost of shipping each crocodile from the holding tank in the State of Gould to the customer.

Q. 2. a. Prepare three income statements for the year assuming that revenue is to be recognized
when:
1. Crocodiles have been caught (i.e. production complete).
2. Crocodiles have been sold and delivered
3. Cash collections are complete
b. What income would you report for 2008? Why? Support your answer with reference to appropriate FASB's rules.