You are auditing the financial statements of a not-for-profit organization. The organization recently opened its first shelter to house the homeless and incurred advertising costs to increase awareness of the shelter throughout the local community.

(a) Identify the specific FASB ASC guidance on advertising costs.

(b) Describe the entities to which the guidance applies. Describes the transactions to which the guidance applies. Cite the relevant FASB ASC references.

(c) Since this homeless shelter is the first one the organization opened, you are wondering whether this could be considered a start-up activity for accounting purposes. Identify the specific topic and subtopic that contains accounting guidance on start-up costs. Describe the entities and transactions to which the guidance applies. Can the advertising costs be considered start-up costs? Cite the relevant FASB ASC reference.