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Hey, can you look at the attachment and answer the following questions: 1. Prepare an Adjusted Income Statement for AOL, after taking out unusual items,
Hey, can you look at the attachment and answer the following questions:
- 1. Prepare an Adjusted Income Statement for AOL, after taking out unusual items, purchased R&D, and adjusting the accruals for customer acquisition costs and product development costs. You can ignore taxes.
- 2. Compare the inferences you would make for the original and adjusted statements.
- 3. Is there any evidence that AOL benefited from operating leverage?
- 4. What does the AOL story tell you about accounting for intangibles?
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