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Question - Hotel Properties - Hotel properties comprise land, buildings, furniture, fixtures and equipment, and other and are stated at cost less accumulated amortization and any impairment losses. The application of this policy requires an estimate of the useful life of the asset and its residual value. The revenue and operating expenses of the hotel properties are included within net operating income in the consolidated statements of income.
The Company provides for amortization of hotel properties so as to apply the cost of the assets over the estimated useful lives as follows:
Method
Rate
Buildings
Straight-line
40 years
Furniture, fixtures and equipment
5 to 10 years
Other
Required - What is the accounting standards for hotel properties?
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Presented below is the subsidiary accounts receivable account of Jeremy Dody.
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