Please do A, B and C

A. In your own words, explain what is meant by Hollywood Accounting, and why it exists? Explain and give an example of how a film company can inflate their costs and lower their net income for a specific movie through the use of a related entity (or entities). What do powerful stars do to make sure they get fairly paid? B. Does the practice of Hollywood Accounting violate GAAP / IFRS? C. A restaurant current has monthly sales of $200,000 and monthly profit of $30,000. The restaurant rents space from a landlord. The restaurant provides audited financial statements to the landlord on a regular basis. Why would the landlord prefer to collect rent of $10,000 per month +1% of sales instead of $10,000+10% of profit from the restaurant