Using the FASB Codification, develop two memos to your client using the outline presented.

Facts - State the relevant facts surrounding the issue.

Issue(s) - List the researchable questions you are trying to answer.

Analysis - Include all relevant authoritative guidance, along with analysis in your own words of how the guidance applies to your fact pattern.

Conclusion - State your conclusion based on your research, highlighting key factors considered. Provide more detail for highly judgmental issues.

Financial Statement and Disclosure Impacts - Summarize financial statement accounts affected and any disclosures required. Include journal entries when possible.

The Morris Corporation is a very successful and profitable manufacturing corporation. The corporation just completed leasehold improvements of its corporate offices, primarily for its top executives. The president and founder of the corporation, Mr. Timothy Couch, is an avid collector of artwork and has instructed that the lobby and selected offices be decorated with rare collections of art. These expensive works of art were purchased by the corporation in accordance with Couch's directives. Couch justified the purchase of these works of art on the premise that:

1. They are excellent investments and should increase in value in the future.
2. They provide an appropriate and impressive atmosphere when current and prospective customers visit the corporation's offices.
3. The artwork is depreciable property, and the corporation will be able to take sizable write-offs against income.

The financial vice-president of the corporation has requested your advice as to the depreciability of the leasehold improvements and the art. Prepare a research memorandum for the financial vice-president on these issues. Include a discussion on the different depreciation methods permitted and the availability of those methods of depreciation for both the leasehold improvements and the art.