1. ASH ACC 306 W EEK 2 DQ 2 E THICS C ASE 15-4 C HECK THIS A+ TUTORIAL GUIDELINE AT HTTP :// WWW. ASSIGNMENTCLOUD. COM / ACC -306- ASH / ACC -306- WEEK -2- DQ -2- ETHICS - CASE -15-4 F OR MORE CLASSES VISIT HTTP :// WWW. ASSIGNMENTCLOUD. COM E THICS C ASE 15–4 - A MERICAN M OVIEPLEX - L EASEHOLD IMPROVEMENTS ● LO3 A MERICAN M OVIEPLEX, A LARGE MOVIE THEATER CHAIN, LEASES MOST OF ITS THEATER FACILITIES. I N CONJUNCTION WITH RECENT OPERATING LEASES, THE COMPANY SPENT $28 MILLION FOR SEATS AND CARPETING. T HE QUESTION BEING DISCUSSED OVER BREAK - FAST ON W EDNESDAY MORNING WAS THE LENGTH OF THE DEPRECIATION PERIOD FOR THESE LEASEHOLD IMPROVEMENTS. T HE COM - PANY CONTROLLER, S ARAH K EENE, WAS SURPRISED BY THE SUGGESTION OF L ARRY P ERSON, HER NEW ASSISTANT. K EENE : W HY 25 YEARS ? W E ’ VE NEVER DEPRECIATED LEASEHOLD IMPROVEMENTS FOR SUCH A LONG PERIOD. P ERSON : I NOTICED THAT IN MY REVIEW OF BACK RECORDS. B UT DURING OUR EXPANSION TO THE M IDWEST, WE DON ’ T NEED EXPENSES TO BE ANY HIGHER THAN NECESSARY. K EENE : B UT ISN ’ T THAT A PRETTY ROSY ESTIMATE OF THESE ASSETS ’ ACTUAL LIFE ? T RADE PUBLICATIONS SHOW AN AVERAGE DEPRECIATION PERIOD OF 12 YEARS. R EQUIRED : 1. H OW WOULD INCREASING THE DEPRECIATION PERIOD AFFECT A MERICAN M OVIEPLEX ’ S INCOME ? 2. D OES REVISING THE ESTIMATE POSE AN ETHICAL DILEMMA ? 3. W HO WOULD BE AFFECTED IF P ERSON ’ S SUGGESTION IS FOLLOWED ? HTTP :// WWW. ASSIGNMENTCLOUD. COM / ACC -306- ASH / ACC -306- WEEK -2- DQ -2- ETHICS - CASE -15-4 HTTP :// WWW. ASSIGNMENTCLOUD. COM