Fiscal year 2016 (April 1, 2016 - March 31, 2017)has been great for Murphy Incorporated. Net income is higher than expected. Management believes that fiscal year 2017 will not be as profitable. On December 31, 2106, Murphy signed a one year contract for monthly advertising for $2,400,000. The advertising began on January 1, 2017. The CEO has asked the accountant to expense the $2,400,000 during fiscal year 2016.
You are the accountant. Comment on each of the following:
Correct Answer:
Verified
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