ACC 306 WEEK 2 DQ 2 ETHICS CASE 15 4 ASH COURSE
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ACC 306 WEEK 2 DQ 2 ETHICS CASE 15 4 ASH COURSE
Ethics Case 15–4 – American Movieplex – Leasehold improvements ● LO3
American Movieplex, a large movie theater chain, leases most of its theater facilities. In conjunction with recent operating leases, the company spent $28 million for seats and carpeting. The question being discussed over break- fast on Wednesday morning was the length of the depreciation period for these leasehold improvements. The com- pany controller, Sarah Keene, was surprised by the suggestion of Larry Person, her new assistant.
Keene: Why 25 years? We’ve never depreciated leasehold improvements for such a long period.
Person: I noticed that in my review of back records. But during our expansion to the Midwest, we don’t need expenses to be any higher than necessary.
Keene: But isn’t that a pretty rosy estimate of these assets’ actual life? Trade publications show an average depreciation period of 12 years.
Required:
1. How would increasing the depreciation period affect American Movieplex’s income?
2. Does revising the estimate pose an ethical dilemma?
3. Who would be affected if Person’s suggestion is followed?
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ACC 306 WEEK 2 DQ 2 ETHICS CASE 15 4 ASH COURSE
To purchase this visit here:
http://www.nerdypupil.com/product/acc-306-week-2-dq-2-ethics-case-15-4-ash-course/
Contact us at:
nerdypupil@gmail.com
ACC 306 WEEK 2 DQ 2 ETHICS CASE 15 4 ASH COURSE
Ethics Case 15–4 – American Movieplex – Leasehold improvements ● LO3
American Movieplex, a large movie theater chain, leases most of its theater facilities. In conjunction with recent operating leases, the...