For several years a number of food lioninc grocery stores

Assignment Help Accounting Basics

Reference no: EM13613911

For several years, a number of Food Lion,Inc., grocery stores were unprofitable. The companyclosed, and continues to close, some of these locations. It isapparent that the company will not be able to recover the cost ofthe assets associated with the closed stores. Thus, the currentvalue of these impaired assets must be written down.
A recent Food Lion income statement reports a$9.5 million charge against income pertaining to the write-down ofimpaired assets.

A. Explain why Food Lion must write down the current carrying value of its unprofitable stores.

B. Explain why the recent $9.5 million charge to writedown these impaired assets is considered a noncash expense

Reference no: EM13613911

Questions Cloud

An entrepreneur is considering the purchase of a : an entrepreneur is considering the purchase of a coin-operated laundry. the current owner claims that over the past 5

A parallel-plate air capacitor is made from two plates 0250 : a parallel-plate air capacitor is made from two plates 0.250 m square spaced 0.900 cm apart. it is connected to a 120 v

If the cooling water enters at a temperature of 20 degree c : one way to decrease the power needed to compress a gas using a compressor is to encompass the compressor in a water

A catalog company that receives the majority of its orders : a catalog company that receives the majority of its orders by telephone conducted a study to determine how long

For several years a number of food lioninc grocery stores : for several years a number of food lioninc. grocery stores were unprofitable. the companyclosed and continues to close

The electric field at the midpoint m between the charges : two point charges of the same magnitude but opposite signs are fixed to either end of the base of an isosceles

If the power output of the turbine is 2 mw determine a the : steam enters an adiabatic turbine steadily at 3 mpa and 400 degree c and leaves at 50 kpa and 100 degree c. if the

Assume that iq scores are normally distributed with a : assume that iq scores are normally distributed with a standard deviation of 11 points and a mean of 100 points. if 140

An electric field of 210000 nc points due west at a : an electric field of 210000 nc points due west at a certain spot. what is the magnitude of the force that acts on a

User Account

All Pages