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SCENARIOS Purgatory-Durango

question 19

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SCENARIOS
Purgatory-Durango
Joe Average is "A-OK" with the Purgatory-Durango ski resort.Rather than try to keep up with big-budget competitors like Vail and Aspen,the southwestern Colorado resort has poured its meager marketing budget into a no-frills advertising approach to lure "real people" to its slopes.The advertising campaign has the catchy slogan,"You Don't Have to Be Cool to Ski Purgatory." "Movie Star," the title of a full-page color ad,features a Polaroid photo of a smiling,overweight,slightly geeky man in a neon orange ski suit that looks like it could double as hunting attire in a duck blind.His skis aren't new,his hat doesn't match his outfit,and he is wearing goggles.This ad's copy says "We are Purgatory-Durango,not Telluride.And this is John Taber--not someone the tabloids would follow to the slopes.You don't need to be a celebrity to be treated like a star at Purgatory-Durango." This year,public relations activities included passing out to news media plastic pocket protectors containing pens,a used pencil,and a comb bearing the message: "Purgatory-Durango--No.1 in Grooming."
-Refer to Purgatory-Durango.The "Movie Star" ad is only one of a series of ads that focus on a common theme,"You Don't Have to Be Cool to Ski Purgatory." The series of ads,taken together represent the:

Definitions:

Sum-Of-The-Years'-Digits

An accelerated depreciation method that applies a decreasing fraction to the depreciable cost of an asset over its useful life.

Depreciation Expense

An accounting method for allocating the cost of a tangible asset over its useful life, reflecting the asset's decrease in value over time.

Impairment Review

An examination of assets to determine if their carrying value exceeds their recoverable amount, potentially leading to an impairment loss.

Property, Plant

Property, Plant, and Equipment (PP&E) are long-term tangible assets used in the operation of a business and not intended for sale.