Question: You are the accountant for a chain of diners in
You are the accountant for a chain of diners in pizza and Italian food restaurants. The company is owned by the founder plus ten other investors who aren't involved in the management of the chain. These investors rely on the financial statements to evaluate how the company is doing. The chain has recently started a home delivery service for its pizza so that people could enjoy hot and fresh gourmet style restaurant pizza in their homes. After a trial period, the chain purchased ten cars to make deliveries. You have to prepare the yearend financial statements for the restaurant and have to decide how to depreciate the car. What depreciation method, useful life, and residual value would you assign to the cars? Explain your decision fully and discuss the factors you considered. Assume the restaurant prepares its financial statements in accordance with IFRS. The cars cost $200,000.
Answer to relevant QuestionsFiscal 2017 was an outstanding year for Esterhazy Inc. (Esterhazy). For a variety of reasons, the company's sales surged and net income was going to exceed financial analysts' expectations by more than 20 percent or ...Use the following information and deter mine the carrying amount of the property, plant, and equipment of Manotick Inc. on December 31, 2017, the company's year-end. (An accounting equation spreadsheet, journal entries, or ...In January 2015, Coaticook Inc. (Coaticook) purchased a patent for a pharmaceutical designed to help bald people to grow hair. The drug behind the patent was considered revolutionary at the time and Coaticook's management ...Albanel Ltd. (Albanel) is a manufacturing company. On December 31, 2017, Albanel reported property, plant, and equipment, net of accumulated depreciation, of $4,750,000. Below is Albanel's cash flow statement for the year ...TELUS is a fairly well-known brand name in Canada, yet it's not included among the company's intangible assets. Why not? Do you think the TELUS brand name should be reported as an asset? What would some of the problems be ...
Post your question