Fiscal year 2018 (April 1,2018 - March 31,2019)has been great for Murphy Incorporated.Net income is higher than expected.Management believes that fiscal year 2019 will not be as profitable.On December 31,2018,Murphy signed a one-year contract for monthly advertising for $2,400,000.The advertising began on January 1,2019.The CEO has asked the accountant to expense the $2,400,000 during fiscal year 2018.
You are the accountant.Comment on each of the following:
Correct Answer:
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