ACC 537 Week 6 CA22-4 Analysis of Various Accounting
Changes and Errors( Solution and Presentation)
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ACC 537 Week 6 CA22-4 Analysis of Various Accounting
Changes and Errors( Solution and Presentation)
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This Tutorial contains both Solution and Presentation
CA22-4( Analysis of Various Accounting Changes and Errors) Katherine Irving, controller of Lotan Corp., is aware of a pronouncement on accounting changes. After reading the pronouncement, she is confused about what action should be taken on the following items related to Lotan Corp. for the year 2014.
1. In 2014, Lotan decided to change its policy on accounting for certain marketing costs. Previously, the company had chosen to defer and amortize all marketing costs over at least 5 years because Lotan believed that a return on these expenditures did not occur immediately. Recently, however, the time differential has considerably shortened, and Lotan is now expensing the marketing costs as incurred.