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Solved: Suppose you are ready to invest in a small resort


Paradise Found: Two Promising Locations for a Small Resort Property ===

Are you looking to invest in a small resort property? Well, look no further than the picturesque regions of Nootka and Tofino, both located on the beautiful west coast of Vancouver Island. These two locations offer breathtaking vistas and an array of activities, making them perfect for attracting tourists. In this article, we will focus on Nootka Resort, one of the most promising locations for your investment portfolio.

Nootka Resort: A Slice of Heaven for Your Investment Portfolio

Nootka Resort is a slice of paradise for anyone who loves the great outdoors. Nestled in a pristine section of the west coast, this location is perfect for both relaxation and outdoor activities. Visitors can enjoy fishing, kayaking, whale watching, and exploring the surrounding islands. The resort also offers a range of amenities, including lodges, cabins, and dining facilities that cater to everyone’s needs.

Investing in Nootka Resort will offer you a plethora of opportunities. With the right management and marketing strategies, you can attract visitors from all over the world. The location’s natural beauty and abundance of activities make it a perfect destination for adventure seekers and nature enthusiasts. By immersing yourself in the local culture, you can offer a unique and memorable experience for your guests.

If you’re looking to invest in the hospitality industry, Nootka Resort is an opportunity you can’t afford to miss. With a team of dedicated staff and stunning surroundings, you can create an unforgettable experience for your guests while ensuring a sound return on your investment.

In conclusion, Nootka Resort offers the perfect opportunity for investors looking to invest in a small resort property. From its natural beauty to its abundance of activities, Nootka Resort provides a one-of-a-kind experience for guests. So why wait? Take the plunge and invest in this idyllic slice of paradise.

Suppose you are ready to invest in a small resort

Suppose you are ready to invest in a small resort property. Two locations look promising: Nootka Resort in Victoria, British Columbia, and Critter Cove Resort in Nova Scotia. Each place has its appeal, but Nootka Resort wins out. The main allure is that the price is better. The property owners provide the following data:

Income statements for the last three years report total net income of $284,100 for Nootka Resort and $151,400 for Critter Cove Resort.

Inventories Nootka Resort uses the FIFO inventory method, and Critter Cove Resort uses the weighted-average method. If Nootka Resort had used weighted average, its reported inventory would have been $3,750 lower. If Critter Cove Resort had used FIFO, its reported inventory would have been $3,200 higher. Three years ago there was little difference between weighted-average and FIFO amounts for Nootka, and between weighted-average and FIFO amounts for Critter Cove.

Property, Plant, and Equipment Nootka Resort uses the straight-line amortization method and an estimated useful life of 35 years for buildings and 7 years for furniture and fixtures. Estimated residual values are $216,000 for buildings and $0 for furniture and fixtures. Nootka Resort’s buildings and furniture and fixtures are three years old.

Critter Cove Resort uses the double-declining-balance method and amortizes buildings over 35 years with an estimated residual value of $245,000. The furniture and fixtures, now two years old, are being amortized over seven years with an estimated residual value of $45,450.

Accounts Receivable Nootka Resort uses the direct write-off method for uncollectibles. Critter Cove Resort uses the allowance method. The Nootka Resort owner estimates that $1,075 of the company’s receivables are doubtful. Prior to the current year, uncollectibles were insignificant. Critter Cove Resort’s receivables are already reported at net realizable value.


1. To compare the two resorts, convert Nootka Resort’s net income to the accounting methods and the estimated useful lives used by Critter Cove Resort.

2. Compare the two resorts’ net income after you have revised Nootka Resort’s figures. Which resort looked better at the outset? Which resort looks better when they are placed on equal footing?

Suppose you are ready to invest in a small resort


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