Use FASB Codification site to attain the answeres and then cite the url the solutions came from for all requirements.

1. Lawn Shop, Inc. operates retail stores in various locations across the U.S. The company sells andscaping materials, including plants and fertilizers. It currently uses the first-in first-out (FIFO) inventory method and is considering switching to another method. The following questions have arisen in regard to inventory accounting. Which inventory cost flow assumptions are available to be used by the company? [9 points] (Ignore any income tax issues.) b. The company sells plants for landscaping. This inventory frequently experiences fluctuations in its market price (net realizable value) over the course of the year. Prices increase in the summer and decrease in the winter. If the company recognizes a loss due to a lower of cost or market write-down in an interim period, such as the second quarter (ended December 31), but xpects the market value to increase before year end (i.e. the fourth quarter, ended June 30), is it necessary to recognize the lower of cost or market loss in the second quarter? [10 points] c. The company sells a variety of fertilizer which requires 3 months for production due to a prolonged fermentation process. If the company borrows funds to finance the production of the fertilizer, must it capitalize the interest in the cost of the inventory? [8 points] 2. Johnson Health is a drug company which manufactures and sells prescription and over the counter medications. The following accounting issues need to be addressed. a. Johnson has a patent on a drug, Myoplat, which has a remaining legal life of 10 years? What is the appropriate amortization period for the patent? [6 points]? b. Can Johnson present its intangible assets under property, plant and equipment on its balance sheet? [6 points How does Johnson report amortization expense on its income statement? [6 points] 3. Bi-Tech Industries sells cell phones combined with mobile phone service in a package to its customers. The company is planning to sell a new product, one never sold by the company in the past. a portable phone charger which allows customers to charge their phones when they do not have access to an electrical outlet. The company will sell the three products in a package for a single price of $1,050. The package includes the phone, charger and one year of mobile service. The phone is sold separately for $475 and the one year of mobile service is priced separately at $550. How much is allocated to each of the three performance obligation in the package? [25 points] revenue