McDonalds Corporation is the worlds leading global food service retailer with more than 36,000 locations worldwide in more than 100 countries. The corporation operates and franchises McDonalds restaurants, which serve menu items such as the Big Mac, Chicken McNuggets, and McFlurry desserts. In addition, McDonalds also serves McCafe beverages and pastries.

Requirements

1. Where would McDonalds Corporation report plant assets on its financial statements? How are plant assets reported and what is the value as of December 31, 2015?

2. Does McDonalds Corporation depreciate its plant assets? How do you know? What is the depreciation method used and the useful lives?

3. How is the book value of plant assets calculated? What is the net book value of McDonalds plant assets as of December 31, 2015?

4. What type of intangibles would be included on McDonalds financial statements and where?

5. What is goodwill? Does McDonalds Corporation report goodwill? If so, how much goodwill is reported as of December 31, 2015? What does McDonalds goodwill primarily result from?