The Following Event Occurred After the Company's Year-End but Before

question 132

Essay

The following event occurred after the company's year-end but before the completion of the audit. For this subsequent event, determine whether the event:
•requires an adjustment to the year-end financial statements,
•requires note disclosure, or
•requires neither adjustment to recognized amounts nor disclosure.
New technology makes a major capital asset redundant or causes it to lose significant fair market and salvage value. (Justify your recommendation).

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Definitions:

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, famously demonstrated by Ivan Pavlov’s experiments with dogs.

Pavlov

A Russian physiologist best known for his work in classical conditioning, particularly through his experiments with dogs.

Conditioned Stimulus

An initial neutral cue that, once linked with an unconditioned stimulus, gradually leads to a conditioned response.

Conditioned Response

A learned response to a previously neutral stimulus that has become conditioned by being paired with an unconditioned stimulus.