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Unformatted text preview: building located at the edge of the new subdivision.
The building cost $300,000 and there is a $210,000 mortgage on it. The Wu family lives in a
spacious apartment above the store. Mortgage payments and all utilities and property taxes for
the entire building are included in KCS’s income statements. The Wu’s own the building.
2 The store is open seven days a week from 7 AM to 11 PM. The store is always staffed by Mr. 3
6 7 or Mrs. Wu or one of their children. All work in the store is also done by family members. No
one gets paid for the work they do but money is provided as it is needed, often just taken from
the cash register.
The financial statements are prepared for the bank, which has provided a small loan in
addition to the mortgage on the building, and for tax purposes.
KCS amortizes its capital asset on the same basis as is required for tax purposes, usin...
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This document was uploaded on 02/28/2014 for the course ACC 110 at Ryerson.
- Fall '12
- Financial Accounting