Buy answer
Topic: Accounting for Broadcasters
Subject: Finance and Accounting
Paper type: Essay (Any Type)
Style: APA
Cost: $15
Number of soruces: 1
Language: English (U.S.)

Question

 

Instructions:

            Your client, Do the Chop Broadcasting, just purchased property for its station headquarters alongside the Blue Ridge Parkway in North Georgia. The location is at an altitude high enough for uninterrupted signal, and close enough to BraveNation communities in both Georgia and North Carolina, where there are high concentrations of fans. Their listenership is largely a result of the quality signal these mountain communities can receive due to locale.

 

Your client paid a high price for the property—$1 million above the fair market value of the assets acquired. The president of Do the Chop Broadcasting has made it clear that the reason he agreed to pay this price is for the access to potential markets in both states without landscape interference. Accordingly, he has asked for an account entitled “Airwaves” be set up in the balance sheet and valued at $1 million.

 

As Do the Chop’s CPA, you know you will have to take a position on this issue. Should your firm allow the client to account for the $1 million in the way he suggests? If not, what is your firm’s position on how the transaction should be accounted? Write a recommendation to your boss, detailing the position your firm should take with this client, and why

      


Answer

As the firm’s CPA, the issue of accounting for the purchase will be both logical and ethical at the same time. The firm must find guidance, especially from historical cases of accounting for intangibles in the broadcasting industry. ...
Buy answer