Privately owned BlueScreen Corporation is primarily a retailer of computer equipment for individuals and small business….

Privately owned BlueScreen Corporation is primarily a retailer
of computer equipment for individuals and small business. The
effective cost of computer equipment and peripherals, at both the
retail and manufacturing levels, has been declining rapidly for
many years and shows every sign of continuing that decline. The
company also develops software intended for small business
applications—that is, for companies with up to 500 employees. The
software is sold in BlueScreen’s own stores as well as through the
company website. However, most sales come through general software
distributors (e.g., download.com). For sales through the
distributors, purchasers can obtain a 30-day limited-feature trial
by paying an initial fee equal to 10% of the retail price of the
software. If the customer decides to buy after 30 days, the trial
fee is credited to the total cost of the purchase. On average,
about two-thirds of the trials result in final purchase. Software
development is a continuous process, including updates of existing
software. Some of BlueScreen’s accounting issues are as
follows:
1. What inventory methods should be used for retail merchandise
in its stores and warehouses.
2. How the software development cost should be accounted
for.
3. How the company should account for tangible capital assets,
such as the warehouse building (which it owns), stores (which are
leased), and store fixtures.
4. All of the company’s personnel—retail, managerial, and
software development—are sent annually to professional development
programs to keep their skills at the cutting edge of performance.
The company spends many millions of dollars on these programs every
year. Assume that software development costs are eligible for
capitalization.
5. The company opens an average of 20 new stores every year.
About five stores are closed every year.
Required: Using the chart below, indicate the accounting
policies the company should choose for each of these issues under
each of three different primary financial reporting objectives:

ue
Earnings Maximization
Cash Flow Prediction
Earnings Minimization

1.
New: capitalize and amortize
Expense
Expense

2.
New: capitalize and amortize
Operating
Expense

3.
Buildings: straight line
SL or accelerated
Accelerated depreciation

Leases: operating
Operating
Capital lease

Fixtures: straight line
SL or accelerated
Accelerated depreciation

4.
Defer and amortize
Amortize by unit-of-sale
Expense

5.
Average cost with LCM
FIFO with LCM
FIFO with LCM

Closed: expense–report
below operating earnings
Expense–report as operating
expense
Expense–report as operating
expense

This is what i have now i dont know if its right