There are three discussion question on equity and tax allocation. Please see the attachment. Thanks question 1.docx 1. Discuss accounting for equity securities under the SFAS No. 115 now contained at FASB ASC 320. How is the cost method different from the equity method in accounting for investments in equities? 2. Explain the concept of interperiod tax allocation (treatment of temporary differences) as required by the FASB for financial reporting purposes. Discuss the arguments for and against interperiod tax allocation. 3. Discuss the factors that might motivate corporate management to decide to issue convertible debt. How is the issuance of convertible debt accounted for at the time of issuance under U.S. GAAPs? What arguments can be made for the recognition of the equity feature in convertible debt at the time of issuance of the securities?