The owners of Autocars North was considering the future of his Toronto automobile dealership, Autocars North. In particular, he wondered about changing its nameplate from Volkswagen to Mazda. Over the past five years, Mazda and Autocars North had discussed possible deals, but they had never come to an agreement. Mazda Canada had recently approached him with a new proposal which would involve transforming the current location of his Volkswagen/Audi .....more

This exercise reviews depreciaton of fixed assets. It covers double-declining balance method, units-of-output, straight-line depreciation, trade-ins and depreciating pooled assets, and it emphasizes the principle of depreciating assets according to their use.

Ron Lafayette, bank manager at the Royal Bank, must decide whether to call the loan for Trottier Construction Ltd. The construction industry has just been through two bad years and the economy is expected to decline further for one more year before beginning to recover. Students must analyze the nature of the industry, company's past and future performance, and liquidation values in order to come to a decision.