Narda Corporation agreed to sell all of its capital stock to Effie Corporation for three monthly payments of$200,000. After Effie made her first required payment, it ceased making other payments. The stock subscription agreement states that Effie, thus, forfeits its payments and is entitled to no other future consideration. How should Narda record the $200,000 forfeited payments?
Briefy restate the facts of the case.
Identify the issue.
State the issue in the form of a research question.
Give a short answer to the issue.
Cite the ASC authority for your answer.
Explain the authority and apply it to the facts to discuss your reasoning to arrive at the answer.
