In 2015, United Continental Holdings, Inc., (UAL), will be purchasing 23,000 iPhone 6 Plus handsets for its flight attendants to use in-flight for retail transactions. The phones will also be used for email, United’s internal network, and various policies and procedures manuals. Beyond the cost of the iPhone 6 Plus handsets, United will have to […]
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How does Nike recognize the costs of suing 31 companies over Chuck Taylor trademark infringement?
October 29, 2014 
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In October 2014, Nike filed suit against 31 companies, claiming these companies have infringed on Nike’s Converse Chuck Taylor All Star sneakers trademark. Chuck Taylor All-Star sneakers have been made since 1917 when Converse first produced them (Nike purchased Converse in 2003). It is an iconic shoe, with black stripes and a rubber toe topper. […]
Continue readingHow will Slappey Communications’ investment in PP&E affect its financial statements?
September 30, 2014 0 Comments
Slappey Communications is a technology firm in Birmingham, Alabama, specializing in telecommunications, computer, and network security. Its owner, Bill Slappey, invested nearly $770,000 in property, plant, and equipment for the business in 2014 (See “Small Firms Poised to Spend More on Plants, Equipment,” A. Loten and V. Monga, Wall Street Journal, September 3, 2014.) Slappey […]
Continue readingHow will a $37 million expansion to retool an assembly plan impact GM’s financial statements?
July 29, 2014 0 Comments
General Motors (GM) is considering a $37-million expansion to one of its Michigan assembly plants. The Buick Enclave, Chevrolet Traverse, and GMC Acadia crossovers are built at the Lansing Delta Township plant. GM officials have not announced what the $37-million expansion will include but they have applied for tax incentives from the City of Lansing […]
Continue readingWhat is the balance sheet impact of Delta’s improvements to its LAX Terminal 5?
May 27, 2014 0 Comments
Delta Air Lines is partnering with the City of Los Angeles and Los Angeles World Airports (LAWA) to overhaul Terminal 5 at Los Angeles International Airport (LAX) for a total estimated cost of $240 million. The project is expected to start in 2015. Delta is contributing $12 million for check-in and lounge improvements and the […]
Continue readingHow will cutting 18 months off the life of its Celebrex patent impact Pfizer’s profits?
May 20, 2014 0 Comments
Pfizer, headquartered in New York City, is one of the world’s largest pharmaceutical companies (as measured by revenues.) It holds patents on many of the drugs it manufactures. One of these patents gives Pfizer the exclusive right to market the painkiller, Celebrex. (Celebrex generated $1.9 billion in revenue in 2013.) In a recent patent ruling, […]
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 is the term “depreciation” used in a news story about the resale value of electric cars?
January 27, 2014 0 Comments
A recent news story in USA Today was entitled “Depreciation hits electric cars hard.” According to USA Today, a Ford Focus Electric automobile will be worth about 20% of its initial $35,995 list price after five years, while a conventional Ford Focus (gas-engine) will be worth about 36% of its initial value. The 2013 Nissan […]
Continue readingWhat were the intangible assets in Yahoo’s purchase of Tumblr?
August 10, 2013 0 Comments
Yahoo purchased Tumblr, a blog-hosting website, in May 2013 for approximately $990.2 million. The fair values of the net tangible assets and identifiable intangible assets acquired from Tumblr were as follows (in millions): Cash $ 16.6 Other tangible assets 74.0 Identifiable intangible assets: Developed technology 23.7 Customer contracts 182.4 […]
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Accounting in the Headlines 