Your company has just paid in advance for 12 months of billboard advertising. The company must determine how to record the cost of this advertising.

a) What does your instinct tell you?

b) Perform research within the Codification to find guidance on this issue. List two Codification subtopics that you think are most relevant to this issue and provide a one-sentence summary for each. Assume this is not a direct response advertising cost. Also assume that ASC 340-20 does not apply.

c) Consider: How might your response to this research question have differed if you had not stopped to think about the issue before performing research?