Case 05-7 Ace Company

 Serious technical writing required in a Memo format. ACCOUNTING KNOWLEDGE USING FASB CODIFICATION PREFERRED!!!

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Required:
In deciding how to account for the issuance of the MEDS, address the following issues:
• Should the various components of each MEDS be accounted for separately? If so,
how should Ace allocate the proceeds received among the components?
• Should each MEDS (if accounted for as one unit of account) or the components of
the MEDS (if accounted for separately) be accounted for as a derivative, or should
any embedded derivatives be accounted for separately