I CASE Delfield Corporation has contemplated the issuance of additional stock for funding a plant expansion. Delfield entered into a stock subscription program that includes monthly payments for the purchase of its stock. One potential subscriber entered into a stock purchase agreement with Delfield to buy 5000 shares of Delfield's stock at a total price of $50,000 ($10/share) to be paid in 4 monthly payments of $12,500 per month. The stock subscription agreement included a statement that any payments made are nonrefundable. After 2 payments totaling $25,000, the subscriber defaulted on the remaining 2 payments. As a result, Delfield recorded the nonrefundable $25,000 paid as other income in the current income statements. However, its public auditor was against this accounting treatment and insisted that the $25,000 non-refundable payments should not be recorded as part of the company's income. QUESTION Was the auditor correct that the defaulted payments of $25,000 should not be included in the company's income statement as discussed in the case below? Provide specific Accounting Standards Codification (ASC) references and how you identify and apply the references (250-500 words)