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Case Scenario Abudul Salah Hospitality (ASH) LLC is well established hotel network in the sultanate. With spectacular views of the majestic Hajar mountains and just

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Case Scenario Abudul Salah Hospitality (ASH) LLC is well established hotel network in the sultanate. With spectacular views of the majestic Hajar mountains and just steps away from the Arabian Sea, ASH Muscat embodies the richness of Omani warmth and culture within authentic Arabian architecture. Make the most of five star facilities including modem meeting rooms, a spectacular wedding hall for destination weddings, as well as local and international restaurants and bars, all while taking in the convivial ambience from the moment guest enter the lobby Assume that you have been appointed as the Financial Accountant of ASH Muscat and it is considering a process of financial policy streamlining in the internal operations for the year ended 31 December 2019. Following accounting policies are being reviewed 1. Depreciation of hotel buildings 2. Sale of Hotel furniture and room amenities 3. Purchases of kitchen supplies Details of policy reviews and requirements are as follows: 1. Depreciation of hotel buildings ASH Muscat is perfect for both business and leisure pursuits. For a weekend in Muscat or staying longer, it is one of the largest and most opulent leury hotels Muscat has to offer, with 280 stylishly appointed hotel rooms & suites, with a remarkable Arabian style interior design As of 1 January 2019, the company has been accumulated a depreciation of OMR 12 500 for all buildings and the following details are available for your reference. Building Costin Salvage Deprecation Economic Activity Depreciation Location OMR value rate fetime level in method number of days occupied West-wing 20000 2000 20% or 2096 10 or 5 or 4 300 days Straight Line of 25% Method East-wing 35000 5000 25% 15 or 75 or 100 or 200 5 years or 300 days Activity Method North-wing 45000 5000 30 12% or 5% or 7 of 12 or 3 300 days years Written down value method Sum of the Years' Digit South-wing 25000 2000 12% or 5% or 7 or 6 or 5 300 days 10% "Estimated total number of days for the entire economic lifetime is 1500 days. **Previously accumulated depreciation of North-wing is OMR 12000 as at 19 January 2019. ***Remaining lifetime of South-wing is 4 years. NB: "Selection is from your own choice for Deprecation rate, Economic lifetime and Activity level wherever applicable Question 1 al lain the factors of contention steach of these factors with Copy Select All Look Up Share... reasons for the given depreciation method

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