We're Open
+44 7340 9595 39
+44 20 3239 6980

[Solved] What is the Main Accounting Issue?

  100% Pass and No Plagiarism Guaranteed

[Solved] What is the Main Accounting Issue?

What is the Main Accounting Issue?



Answer the required questions for each of the following exercises. You do not need to use the memo format.

Exercise 1. The Ryan Corporation

The Ryan Corporation is a real estate development company. In addition to developing raw land, it constructs and rehabilitates office buildings, which it then sells. Ryan recently acquired the building of a failed savings and loan company for $5 million. The building has been vacant since last year when the government declared the S&L to be insolvent and sold its assets to another, healthier one. Ryan bought the building with the intention of gutting much of the interior, remodeling it into a modern, "class A" building, and then selling it.

Because the building was constructed a number of years ago, lead pipes were installed for its plumbing system. Because lead pipes have been found to contaminate the water they carry, the government has deemed them to be a health hazard and adopted regulations requiring their removal and replacement whenever a building is renovated. Ryan was aware of the regulation when negotiating for the building`s purchase. The total cost of remodeling the building will be $4 million, of which $500,000 is for removal of the lead pipes and replacement with copper plumbing. The remodeling will not increase the building`s expected useful life, although it will enhance its rental value. Ryan has been a client of your firm, Honest Abe CPA, and you are assigned to help Ryan on how to account for the cost of removing and replacing the plumbing system.


1. What is the main accounting issue?

2. Prepare a problem statement.

3. List five key words to use to search the authoritative literature.


Accounting Research Name Course Instructor Date What is the main accounting issue? The main accounting issue is whether to charge expenses or capitalize the cost for removing and replacing the lead pipes which contaminate drinking water. As a costs related to treating environmental contamination, there is a need for


100% Plagiarism Free & Custom Written,
Tailored to your instructions

International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

UK Registered Company # 11483120

100% Pass Guarantee


View our samples written by our professional writers to let you comprehend how your work is going to look like. We have categorised this into 3 categories with a few different subject domains

View Our Samples

We offer a £ 2999

If your assignment is plagiarised, we will give you £ 2999 in compensation

Recent Updates


  • Title: [Solved] What is the Main Accounting Issue?
  • Price: £ 89
  • Post Date: 2021-10-14T04:33:39+00:00
  • Category: New Samples
  • No Plagiarism Guarantee
  • 100% Custom Written

Customer Reviews

[Solved] What is the Main Accounting Issue? [Solved] What is the Main Accounting Issue?
Reviews: 5

A masterpiece of assignment by , written on 2020-03-12

Very professional and effective assignment writing service.
Reviews: 5

A masterpiece of assignment by , written on 2020-03-12

This is my second order which I booked recently at Insta Research. I just got my coursework completed expertly. Just waiting for good scores now.