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Evaluate the impact on the company financial statements

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Reference no: EM132529009

Question 1: Reconstruct the transactions made by Heartland with respect to its accounting for (a) up-front signing bonus payments, and (b) the estimated costs of buying out the commissions of vested sales employees. Are these accounting methods in accordance with GAAP?

Question 2: Evaluate the impact on the company's financial statements if the company had expensed these immediately, instead of capitalizing and amortizing them.

Reference no: EM132529009

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