Research Case 8-6 FASB codification; locate and extract relevant information and authoritative support for a financial reporting issue; product financing arrangement LO8-2, LO8-3 You were recently hired to work in the controller's office of the Balboa Lumber Company. Your boss, Alfred Eagleton, took you to lunch during your first week and asked a favor. "Things have been a little slow lately, and we need to borrow a little cash to tide us over. Our inventory has been building up, and the CFO wants to pledge the inventory as collateral for a short-term loan. But I have a better idea." Mr. Eagleton went on to describe his plan. "On July 1, 2024, the first day of the company's third quarter, we will sell $100,000 of inventory to th Harbaugh Corporation for $160,000. Harbaugh will pay us immediately, and then we will agree to repurchase the inventory in two months for $164,000. The $4,000 is Harbaugh's fee for holding the inventory and for providing financing. I already checked with Harbaugh's controller, and he has agreed to the arrangement. Not only will we obtain the financing we need, but the third quarter's before-tax profits wil be increased by $56,000, the gross profit on the sale less the $4,000 fee. Go research the issue and make sure we would not be violating any specific accounting standards related to product financing arrangements." Required: 1. Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org) and select Basic View for free access. Determine the specific eight-digit Codification citation (XXX-XX-XX-X) that provides guidance for determining whether an arrangement involving the sale of inventory is "in substance" a financing arrangement? 2. Determine the specific eight-digit Codification citation (XXX-XX-XX-X) that addresses the recognition of a product financing arrangement? 3. Determine the appropriate treatment of product financing arrangements like the one proposed by Mr. Eagleton. 4. Prepare the journal entry for Balboa Lumber to record the "sale" of the inventory and subsequent repurchase