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Marcon Properties Ltd. is a diversified private company that owns approximately 60 retall properties that the company has operated as discount department stores. These stores

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Marcon Properties Ltd. is a diversified private company that owns approximately 60 retall properties that the company has operated as discount department stores. These stores are small, stand-alone properties that Marcon owns outright, although most properties are heavily mortgaged. In 20X1, the company decided, due to increasing losses from retail operations, that all discount department stores should be closed and properties converted to rental units. This process was successfully started in 201, with 22 of 60 properties signed to long-term rental agreements with tenants. It is now the end of 201, and all retail operations have ceased. There are 38 properties currently sitting vacant. Marcon believes that it can successfully lewse the remaining properties over the next 9 to 23 months. For the 201 fiscal year, an accounting policy issue has come up in ielation to the vacant properties whether the properties should be depresiated during the poriod they sit vacant prior to rental, Those in fawour of recording depreclation point out that the properties continue to deteriorate during the period in which they are idle and that depreciation is meant to allow for obsolescence, not just wear and teat. Those who favour suspension of depreciation point out that amortization should be matched with the rental revenue that the properties will gencrate in the future. Marcon is reporting a positive net income in 20X1, generated from a variety of other activities. Required: Required: Indicate which accounting policy you would expect to be adopted in the following independent circumstances Note that in some circumstances, the company wall be indifferent as to the policy chosen. Required: Indicate which accounting policy you would expect to be adopted in the following independent circumstances. Note that in some circumstances, the company will be indifferent as to the policy chosen

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