Hallergan Company produces car and truck batteries that it sells primarily to auto manufactures. Dorothy’s Hawkins, the company’s controller, is preparing the financial statements for the year-end December 31, 2001.

Hawkins asks for your advice concerning the following information that has not yet been included in the statements. The statement will be issued on February 28, 2022.

1. Hallergan leases it facilities from the brother of the chief executive officer.
2. When the related party transaction occurs, the organization must disclose the nature of the relationship, presents and the dollar amount of transactions, and any other dollar amount from related parties.
3. On January 8, 2022, Hallergan entered into an agreement to sell a tract of land that it has been holding as investment. The sale, which results in material grain, was completed on February 2, 2022.

If there is a substantive occurrence after the fiscal year-end but before the financial statements are released, then a notice of disclosure of the material event is published.

1. Hallergan uses the straight-line method to determine depreciation on all of the company’s depreciable assets.
2. -Usually, in a description of a considerable accounting procedure disclosure note, a straight-line way to assess depreciation is preferred.

• On February 8, 2022, Hallergan completed negotiations with its bank for a $10,000,000 line of credit.
• The organization's disclosure note should contain information such as the Hallergan Company’s debt.
• Hallergan uses the first-in, first-out (FIFO) method to value inventory.
• -The company's choice to use the first-in, first-out (FIFO) method to determine the value of fixed assets typically is disclosed in the company's summary of significant accounting policy disclosure note.

Required:

For each of the above items, discuss any additional disclosures that Hawkins should include in Hallergan’s financial statements.