ACC 306 Week 2 DQ 2 Ethics Case 15-4

May 4th, 2015
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ACC 306 Week 2 DQ 2 Ethics Case 15-4

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Ethics Case 154 - American Movieplex - Leasehold improvements LO3American 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? Weve never depreciated leasehold improvements for such a long

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