Background In the fourth quarter of 2013, hackers broke into Target Corporation’s system and stole the names and credit card information for up to 70 million customers. This data breach is among the largest data breaches in U.S. history and lawsuits against Target Corporation are being filed by several parties including customers, credit card companies, […]
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What is the impact on cash from Sony selling its old Tokyo headquarters?
March 24, 2014 
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In March 2014, Sony signed a deal to sell its old Tokyo headquarters and a nearby building for $156 million. This building served as Sony’s headquarters from 1990 to 2007 and is thought of as the birthplace of the company, where Sony founders worked on the Walkman and Trinitron TV. This building sale follows the […]
Continue readingWould R.S. Owens, the manufacturer of Oscar statues, use job costing or process costing?
March 21, 2014 0 Comments
The Academy Awards is an annual American awards ceremony honoring achievements in the film industry. Winners receive a statue officially named the “Academy Award of Merit.” However, these statues are much better known by the nickname of “Oscars.” Each Oscar statue weighs 8.5 pounds and takes three to four weeks to manufacture. The statues have […]
Continue readingWill Uber capitalize or expense the renovations to its headquarters in San Francisco?
March 17, 2014 0 Comments
Uber, is a startup with a mobile app for connecting passengers with drivers of vehicles for hire. Uber arranges rides in several North American cities (for example, New York, Chicago, and San Francisco) and has recently expanded to include countries outside of North America (for example, United Kingdom and France). Recently, it was reported that […]
Continue readingWhat costs will be expensed versus capitalized in Applebee’s investment in tableside tablets for its restaurants?
March 10, 2014 0 Comments
At Applebee’s, Presto tablets by E la Carte are being installed at every table. In total, Applebee’s will be purchasing 100,000 tablets. Customers will be able to pay their food bill and order appetizers and desserts using the tablets. In addition to the initial purchase price of the tablet hardware and various other costs, Applebee’s […]
Continue readingHow would Crocs recognize the preferred stock issued to Blackstone Group?
March 3, 2014 0 Comments
At the end of December 2013, Crocs Inc. announced that Blackstone Group is investing $200 million into the footwear company in the form of a preferred stock purchase. In three years, the preferred stock shares owned by Blackstone Group will convert into common shares if the Crocs common stock market price rises to a certain […]
Continue readingHow do costs of a fashion truck compare with the costs of a bricks-and-mortar store?
February 27, 2014 0 Comments
Fashion trucks are starting to pop up across the country. These fashion trucks are fashion boutiques on wheels. The owners of the fashion trucks drive them from locale to locale, seeking to bring clothing and accessories to urban dwellers who value the convenience of a mobile store front. Emily Duran operates the light pink Passionista […]
Continue readingHow does the renegotiated labor contract impact the standard cost of cars for GM?
February 24, 2014 2 Comments
A few years ago, Chrysler renegotiated its labor contract with the United Auto Workers (UAW) union. New hires were to be paid $14 per hour, down from the $28 per hour veteran workers received. That cut resulted in an average combined wage and benefit rate per hour in 2011 of $49, compared to $76 per […]
Continue readingHow does the SEC allege that Diamond Foods fraudulently increased earnings?
February 19, 2014 0 Comments
Diamond Foods produces and markets Emerald snack nuts, PopSecret popcorn, and several other snack brands. The Securities and Exchange Commission (SEC) recently charged Diamond and two of the company’s former executives (the CEO and the CFO) with misleading investors by fraudulently manipulating income (see “Diamond Foods to Pay $5 Million to Settle SEC Fraud Charges,” […]
Continue readingWhat is the NPV of Applebee’s investment in tableside tablets for its restaurants?
February 14, 2014 0 Comments
At Applebee’s, Presto tablets by E la Carte are being installed at every table. In total, Applebee’s will be purchasing 100,000 tablets. Customers will be able to pay their food bill and order appetizers and desserts using the tablets. The tablets are not replacing wait staff; wait staff will still take the orders for entrees. […]
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Accounting in the Headlines 