Tag Archives: PP&E

How could Ford’s expansion of its Avon Lake plant to manufacture electric commercial vans impact its balance sheet, cash flows, and profitability?

Ford Motor Company (NYSE: F) is moving ahead with a $1.5 billion expansion of its Ohio Assembly Plant in Avon Lake to start producing a new electric commercial van by 2026. This investment is part of Ford’s strategy to shift towards more electric and hybrid vehicles that are cost-efficient and offer better value to customers. […]

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New! Cryptogram puzzle to review PP&E

Below are links to handouts for a cryptogram puzzle to review Property, Plant & Equipment in financial accounting. Both handouts relate to the same puzzle, but one is the student handout and the other is the solution. This is a quick puzzle – it is a phrase that relates to PP & E. To solve […]

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What expenditures would have been capitalized versus expensed in converting a church building to Belltower Brewing Co.?

What expenditures would have been capitalized versus expensed in converting a church building to Bell Tower Brewing Co.? The owners of Bell Tower Brewing Co. in Kent, Ohio, purchased a 150-year-old church a few years ago. Over a three-year period, they converted the church building into a two-story, 9,000-square foot brewery. Pews from the church […]

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New! Word Search Puzzle to Review PP&E and More in Financial Accounting

Below are links to a word search puzzle to review Property, Plant & Equipment and Intangible Assets in financial accounting. Both links are to the same puzzle, but one has a solution button enabled and the other does not. PP&E and Intangible Assets word search puzzle (student version): Share this link with your students to […]

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How will Stack Investors use the relative sales value method to allocate the purchase price of a rental property it purchased?

How will Stack Investors use the relative sales value method to allocate the purchase price of a rental property it purchased? Stack Investors is a real estate company, specializing in student housing rentals. Black Squirrel Rentals recently purchased a house at 121 Crain Avenue in Kent for $55,000. Rooms in the house will be rented […]

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Recap of all data analytics projects available

Hello! I have posted a few data analytics projects here on my blog and thought it might be useful as the semester starts to post the links in one post. (Heads up: I will be posting a new managerial accounting data analytics case within the next week too!) Here goes: Project 1: Transaction analysis for […]

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Will the costs of converting UPS trucks from diesel to electric be capitalized or expensed?

UPS is working with the New York State Energy Research and Development Authority to develop new technology that will allow UPS to convert its diesel-fueled delivery trucks to electric-fueled. UPS hopes to have a working model of the converted delivery truck ready sometime in 2018. The plan is to convert 1,500 of the company’s delivery […]

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Would the costs related to the clothing vending machines that Uniqlo has installed in airports and shopping malls be expensed or capitalized?

Uniqlo, a Japanese clothing designer, manufacturer, and retailer, is installing vending machines in some airports and shopping malls in the U.S., including Oakland Airport (San Francisco), George Bush Intercontinental Airport (Houston), and Queens Center (New York.) Uniqlo’s thermal jackets and parkas, which are thin, warm, and easily packable, are going to be stocked in the […]

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What costs at LimeBike, the bike sharing service, would be capitalized versus expensed?

LimeBike is a start-up founded in 2017 located in San Mateo, California. Its mission is to make shared bicycles accessible and affordable.  The company has taken the basic idea of shared bicycles and eliminated the need to return the bike to a docking station, which may not be near the cyclist’s destination. LimeBike charges $1 […]

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For a Zume Pizza delivery truck that uses a combination of robots, AI, and GPS in pizza preparation and delivery, what will be capitalized versus expensed?

Zume Pizza uses a combination of robots, artificial intelligence (AI), and GPS in its food trucks to deliver pizzas to customers’ houses just as the pizza is finished baking. The process starts with a customer using Zume Pizza’s app to order pizza. The pizza combinations offered by Zume have been derived by analyzing customer data […]

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