[kobasew19]

Originally Posted by Bobblehead

So you want people on CP to do your homework for you?

Haha no, i have some insight on this but i would like to have it confirmed.
Here is what I got feel about the scenarios:

Player A’s salary is likely and measurable so set up a current liability for the 125k for year one and a long term liability for the 100k. I would write off the 1.1 M signing bonus as there is no more future benefit from it.

I would argue that since Player B is plagued by injuries that it is possible that he wouldn’t play more than 31 games in the season, therefore, I would set up a liability for 80k and make an adjusting entry at the end of the year for the difference. I would also write off the signing bonus.

I would capitalize the 25m and the 3 m signing bonus as Player C holds a future benefit for the team. I would also argue that the bonus may be capitalized as well (2M worth, because it would seem likely that Player C would hit the 60 goal plateau before the end of the season)


Thoughts?