ACCT 461 FALL, 2021 ASSIGNMENT: AOL 1. Read the 12/ 95 case and summarize and briey explain each of AOL's \"controversial\" accounting policies. 2. Explain AOL's justication for capitalizing subscriber acquisition costs prior to 1995. Do you agree with this rationale? Why or why not? 3. If all the capitalized subscriber acquisition costs (SAC) were written off as of year end 1995, show the journal entry that would accomplish this and also illustrate how the 1995 balance sheet would have been affected (using dollar amounts).Show each account that would be affected, including any after-tax effect. 4. If all the SAC's which had been incurred during the year 1995 had been expensed, illustrate how the 1995 income statement would have been affected (using after-tax dollar amounts).ln your explanation be sure to clearly reference your amounts. 5. Summarize the relevant nancial information for the AOL-TimeWarner merger and how it was accomplished. Comment on whether this merger was successful. 6. Review the 2002 annual report report and summarize the \"one-time\" charges to earnings for impairment and the effect on full year earnings. 7. Summarize the TimeWarner settlement of AOL's accounting fraud charges and which periods' nancial statements were affected. Summarize the changes to the nancial statements for any years which restatements were required, highlighting the effects on reported earnings. 8. Summarize how the AOL spinoff from TimeWarner was accomplished and when. Discuss whether cash or stock was used and whether the Time Warner stockholders saw their value increase. 9. Summarize the acquisition of AOL by Verizon on 6/23/15, highlighting how it was accomplished, including the timing and price paid. Also discuss any goodwill which was allocated to the purchase price. Find an article which addresses the reasons for the acquisition and summarize. 10. Summarize the sale of Verizon's media group on 5f3f2l including the price paid and the reasons for the sale