Please answer the following questions:

1. a) What is a basket purchase?

b) How are you supposed to account for basket purchases? What are the options, if any?

c) What is a business combination? What are the procedures for its accounting?

d) What is goodwill? How do you calculate it? Is it amortized? What FASB regulates its treatment? (be specific!)

2. As an individual with available liquidity on hand you have a choice to make an investment in a company. You may choose to purchase a bond or purchase stock. You are in your mid-50s and the funds you are willing to invest represent 30% of your net worth and 50% of your liquidity. The company has been in business for 15 years and has issued bonds in the past.

What is your thought process in order to make a decision? What do you want to review in the company? What do you want to know?

Give all the details as to what would be your criteria, with full details, prior to making a decision. Be specific, ranging from YOU personally to the COMPANY. At the end make a decision as to what you would do.