Each of the following cases is related to a topic covered in our course this semester. Please identify the relevant section of the authoritative literature appropriate for each of the following cases. The overall structure of the codification consists of Topics Subtopic Sections Subsections. When referring to specific standards, you need to provide the citation in a standard format and summarize the information relevant to your answer. For example: According to ASC 810-10-25- 1, consolidation is usually appropriate when a reporting entity owns a majority voting interest in another entity.

1. Ch. 13 Long-Term Liabilities An entity retired a bond for less than the carrying value and is trying to decide if it should recognize a gain or amortize the difference over the remaining term of the bond. Which section of the authoritative literature indicates how the difference between the retired bond's reacquisition price and carrying value is accounted for?

2. Ch. 12 Current Liabilities and Contingencies Your client is being sued and their attorney believes that an unfavorable outcome is probable. The client can estimate a potential range of losses that are likely to be incurred but cannot identify a single amount that is a better estimate than any other. Which section of the authoritative literature indicates what amount, if any, should be accrued?

3. Ch. 14 Stockholders Equity An entity wishes to communicate to users of its financial statements that it is not likely to pay dividends because it is accumulating funds for a future acquisition. It is considering using an appropriation of retained earnings. Which section of the authoritative literature indicates whether an entity may recognize an appropriation of retained earnings?

4. Ch. 15 Diluted Securities and Earnings per Share An entity with both cumulative and noncumulative preferred stock is calculating basic earnings per share data and is trying to determine how to account for preferred dividends. Which section of the authoritative literature indicates how to account for preferred dividends in the calculation of basic earnings per share?

5. Ch. 22 Statement of Cash Flows A client uses the direct method to report cash flows from operating activities on its statement of cash flows. The client prefers using a minimum number of line items in that section to keep its financial statements as short as possible. Which section of the authoritative literature indicates the minimum classes of operating cash receipts and payments that should be reported on a statement of cash flows under the direct method?

6. Ch. 18 Accounting for Income Taxes A client is preparing its deferred tax provision and is trying to determine what rate to use. A tax bill that will change the client's tax rate was passed and enacted shortly after the client's year-end. Which section of the authoritative literature indicates what tax rate should be used to measure deferred taxes?