The Reston Rockets Players' Association and Mr Scorekeep, the CEO and majority owner of Reston Rockets Soccer, Inc., ask your help in
resolving a salary dispute. Mr Scorekeep presents the following income statement to the players' representatives.
The players contend that their salaries are below market and a raise is warranted. Mr Scorekeep argues that the Reston Rockets really lose
money and, until ticket revenues increase, a salary hike is out of the question.
As part of your due diligence, you discover that Reston Rockets Soccer owns percent of the voting stock in Rockets Stadium, Inc. This
venue is specifically designed for soccer and is where the Rockets play their entire home game schedule.
However, Mr Scorekeep does not wish to consider the profits of Rockets Stadium in the negotiations with the players. He claims that "the
stadium is really a separate business entity that was purchased separately from the team and therefore does not concern the players. On top
of that, we allocate all the ticket revenues to the team's income statement."
The Rockets Stadium income statement appears as follows:
a Textbook requirement # Please provide a Consolidated Income Statement.
a Textbook requirement # Please provide any documentation you may find in your FASB ACS research. Perhaps para. and para. might be helpful to you.
b Textbook requirement # the textbook lists I'll take recommendations.
