Please read 'Advanced Questions' first for the instruction, which explains about the assignment.

There are 6 questions. 1~5 are fairly simple. Just look up, copy, and paste.

In Answers.pdf file, I attached answers of #6 only from other sources for the 'reference.' Do not copy them.

In the question #6, there are 2 articles mentioned. Only one of them was able to be located.

For question #1 - #5, please reference FASB accounting standards in your answers. You can simply copy and paste the answers from the website. Be sure to include the actual code number in your answer. 1. An estimated loss from a loss contingency shall be accrued by a charge to income under what conditions? 2. Mommy Inc. is a brand new business and has recently engaged in direct-mail advertising. Can the direct-mail advertising expenses be capitalized? If yes, under what conditions? 3. What are the disclosures that generally apply to the equity method of accounting for investments in common stock? 4. What are some of the ways an investor has the ability to exercise significant influence over operating and financial policies of an investee? 5. How should casino revenue be recognized? 6. A client of the CPA firm of Harston and Mendez is a medical practice of seven local doctors. One doctor has been sued for several million dollars as the result of a recent operation. Because of what appears to be this doctor's very poor judgment, a patient died. Although that doctor was solely involved with the patient in question, the lawsuit names the entire practice as a defendant. Originally, four of these doctors formed this business as a general partnership. However, five years ago, the partners converted the business to a limited liability partnership based on the laws of the state in which they operate. Read the following articles as well as any other published information that is available on partner and partnership liability: \"Partners Forever? Within Andersen, Personal Liability May Bring Ruin,\" The Wall Street Journal, April 2, 2002, p. C1. \"Collapse: Speed of Andersen's Demise Amazing,\" Milwaukee Journal Sentinel, June 16, 2002, p. D1. (Attached) Required Based on the facts presented in this case, answer these questions: 1. What liability do the other six partners in this medical practice have in connection with this lawsuit? 2. What factors will be important in determining the exact liability (if any) of these six doctors? Suggested Answers for Question 6 1. As member of limited liability partnership, the other 6 members are not liable for the profesional malpractice of an individual partner. The Texas LLP statute states "A limited liability partner is not liable for professional malpractice that does not involve that partner. " Hence, apparently it can be said that the other 6 doctors does not have any liability in connection with this case. 2. These 6 doctors in the partnership can only be found liable if it is found that the partnership in itself is liable for granting service authority to partners without proper check and that lack of skill led to the professional malpractice. 1. Limited liability partnership is a form of partnership in which partners are only responsible for their own act or act of the individuals under their supervision. Under the given situation, a patient died due to negligence of one doctor. As it is a limited liability partnership now, only that doctor and not all six will suffer law suit. 2. In order to determine the exact liability of six partners, the following factors should be considered: The responsibility of the act of negligence need to be determined. The partnership should be clearly converted into limited liability from the general partnership In that case, only the partner who was responsible for the act will face law suit. Milwaukee Journal Sentinel Milwaukee Journal Sentinel (WI) June 16, 2002 Collapse: Speed of Andersen's demise amazing Author: PAUL GORES; Journal Sentinel staff Edition: All Section: DBusiness Page: 01 Article Text: The Lakeshore Conference Room on the 19th floor of Arthur Andersen's downtown Milwaukee office remains fully furnished, but no new business is being conducted there anymore. The handsome room in the 100 E. Wisconsin office tower, where important clients once met with Andersen partners amid a spectacular view of Lake Michigan and the city, has become little more than excess space for a firm that has been shrinking fast. By the end of this week, about all that will be left of the tax and audit practices of Arthur Andersen's Milwaukee office will be administrative personnel to finish organizing files and records for corporate safekeeping. Many tax and audit employees already are working for other Milwaukee accounting firms or businesses, and a few others are set to join them by Friday. Meanwhile, Andersen's Milwaukee business consulting unit, or at least most of it, is awaiting closure of its planned sale to KPMG Consulting Inc. For all practical purposes, the Milwaukee office -- once considered one of the very best in all of Andersen's realm -- soon will exist only as a shell. "It's so bittersweet," said Tim Hanley, managing partner of the Milwaukee office, noting that the firm has been able to set up many Andersen employees with jobs at other accounting firms. "The last couple of months have been very difficult for the people around here -- to see what we felt was the finest accounting and professional-services firm in the city have to go through a process like this." What's especially troubling to some is that the process -- the selling of units of the once-proud Big Five accounting operation to competitors, and the dismissal of people whose positions didn't fit elsewhere -- was triggered by events in which the Milwaukee office played no part. "It's such a shame at the local level to lose their presence as the result of what happened in Houston," said Sue Dragisic, president of the United Way of Greater Milwaukee. But when the federal government indicted the Andersen firm on obstruction of justice charges in March in connection with the Enron Corp. probe, its corporate integrity and ability to conduct business anywhere were gravely wounded. Major companies began dismissing Andersen as auditor. From then on, whatever the outcome of the obstruction trial, the biggest questions were how the unraveling Andersen offices would be divided up among competitors, who would still have a job when the sorting out was finished and how many clients would follow former Andersen partners to their new firms. In regard to jobs, Hanley said, employees in the Milwaukee office have fared about as well as anyone could have expected under such trying circumstances. "We looked for the best solutions for our people and our clients," he said. More than 200 tax and audit employees, including 18 partners, will have joined Deloitte & Touche two blocks east on Wisconsin Ave. by the end of this week, he said. Many of the tax employees already have been working there for weeks. The accounting firm Grant Thornton acquired most of Andersen's middle-market business -companies with $10 million to $1 billion in annual sales -- and opened a Milwaukee office on one of the 3 1/2 floors Andersen formerly used at 100 E. Wisconsin. It employs about 40 Andersen people. The Milwaukee office's business consulting unit, with about 65 employees, is included in part of a plan by KPMG Consulting Inc. to pick up as many as 23 Andersen consulting divisions worldwide. Other employees of the Milwaukee office, which numbered almost 600 when the year began, have joined other companies, started their own business or still are looking for employment. The speed at which the local Andersen office, which was founded by Arthur Andersen himself in 1915, has dissolved this spring has been stunning, some say. "It's one of the most incredible things I've ever witnessed -- to watch a company that had the reputation that Andersen enjoyed, especially in Milwaukee, in effect become defunct in an incredibly short period of time," said Robert Milbourne, executive director of the Greater Milwaukee Committee. Hanley said the firm strove to keep its audit and tax clients informed about what was happening to the local office in the hope that those customers would transfer their business to wherever the Andersen employees ended up. In many cases, that effort has been successful. Major Wisconsin companies such as Marshall & Ilsley Corp., Briggs & Stratton Corp. and Oshkosh Truck Corp. have switched from Andersen to Deloitte & Touche, where Hanley himself is going by the end of this week. But there were some big casualties, too. S.C. Johnson & Son Inc., of Racine, the state's largest privately held company, cut its ties to Andersen and hired Ernst & Young as its auditor. Earlier, Freeport, Ill.-based Newell Rubbermaid Inc., believed to be the Milwaukee Andersen office's biggest client, with $8.4 million in fees paid in 2001, also jumped to Ernst & Young. Like all Andersen partners, those in the Milwaukee office have taken a significant personal financial hit. In exchange for being released from their contracts with Andersen, the partners were required to leave their investment capital in the firm behind. According to industry expert Allan D. Koltin, most Andersen partners nationally had between $250,00 and $500,000 of invested capital, although some long-term partners had seven figures' worth. "Any invested capital by any Andersen partner is gone, and they pretty much know that when the firm is dissolved or liquidated or put into bankruptcy, whatever remains of the business will go right to creditors," said Koltin, chief executive of Practice Development Institute in Chicago. With the folding of the Andersen office, Milwaukee will lose what civic and charitable groups say has been a tremendous corporate citizen. Andersen had been contributing more than $150,000 each year to the United Way of Greater Milwaukee and was a major supporter of the United Performing Arts Fund. But leaders of non-profit organizations are hopeful that, because many of the employees are staying in town with other firms, they will continue to have an influence on local boards of directors and in fund-raising. Julie Tolan, president of UPAF, said she was impressed by how hard Andersen employees worked even after their lives were rocked by the Enron scandal. "They continued to help us raise money when they had every reason in the world to say, `You know, I'm just a little too busy right now,' " Tolan said. "They are really, truly first-rate." Linda Mansur, spokeswoman for Deloitte & Touche, said her firm always has been an active corporate citizen and would be even more so now that it's bigger. Deloitte & Touche's office now has more than 350 employees and has replaced Andersen as Milwaukee's biggest accounting firm. Copyright 2002 Journal Sentinel Inc. All rights reserved. (Note: This notice does not apply to those news items already copyrighted and received through wire services or other media.) Record Number: 2002061613024069 FASB_accounting_standards_1. docx by FILE FASB_ACCOUNT ING_ST ANDARDS_1.DOCX (27.95K) T IME SUBMIT T ED 23-MAR-2017 11:30AM WORD COUNT SUBMISSION ID 788158317 CHARACT ER COUNT 5705 869 FASB_accounting_standards_1.docx ORIGINALITY REPORT 5 % SIMILARIT Y INDEX 0% 0% 5% INT ERNET SOURCES PUBLICAT IONS ST UDENT PAPERS PRIMARY SOURCES 1 Submitted to Colorado Technical University Online 3% St udent Paper 2 Submitted to Keller Graduate School of Management St udent Paper EXCLUDE QUOT ES ON EXCLUDE BIBLIOGRAPHY ON EXCLUDE MAT CHES