depreciation chapter of class 11

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A restaurant bought a top - of - the - line refrigeration unit. They thought it would last for 10 years with little depreciation. However, after just 5 years, the unit started having major issues. The cost of repairs was almost as much as buying a new one. It turned out the depreciation was much faster than expected because of poor maintenance practices. The restaurant had to cut costs elsewhere to afford a new unit.

A horror story in restaurant asset depreciation could be due to over - estimation of asset lifespan. Say, the restaurant has a set of dining tables and chairs. They estimated the lifespan to be 15 years and based the depreciation on that. But in reality, due to heavy use and wear and tear, they need to be replaced after just 8 years. This throws off the depreciation calculations. As a result, the restaurant may not have set aside enough funds for replacement. Also, changes in technology can be a factor. If a new point - of - sale system comes along and the restaurant's old one becomes obsolete before its estimated depreciation period ends, they face a financial hit. They either have to keep using the old, less efficient system or take a big loss on the un - depreciated value of the asset.

There was a restaurant that bought a very expensive wine cellar system for storing their wine collection. They estimated it would last for 20 years and calculated the depreciation accordingly. However, after just 10 years, a new technology in wine storage emerged that made their system obsolete. They couldn't sell it for much as the market value had dropped significantly. The lesson here is that when estimating depreciation, always consider the potential for technological advancements in the industry. Assets can become worthless much faster than expected.

One possible horror story could be that a restaurant owner bought expensive kitchen equipment. They didn't properly calculate the depreciation. After a few years, the equipment broke down. But they hadn't set aside enough money for replacement because they underestimated the rate of depreciation. So, they had to either close part of the kitchen or take out a large loan to buy new equipment.

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In the second chapter of Naruto New Era, the class leader was the daughter of Naruto Uzumaki.

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