a As S is following average cost method for inventory valuation hence the obsolete or slowmoving items would not affect its financial statements Step 3 of 6 b If the leasehold improvements are the part of the asset then it would be capitalized under GAAP as it would increase the asset cost Step 4 of 6 c The impairment details need to be disclosed on the financial statement for fair view Step 5 of 6 d The impairment of the longlived asset is tested every yearend Step 6 of 6 e Yes S recognizing the gift card correctly Explanation Revenue is recognized only when the amount and timing is computed precisely