Auumse that in 2019, The Cheesecake Factory Incorporated (NASDAQ: CAKE) opened a new restaurant in anupscale neighborhood of Pittsburgh, Pennsylvania. The new restaurant covers 8,850 square feet and seats 240 guests.Rather than selling franchises, Cheesecake Factory owns and operates all of its U.S. restaurants, which at last countnumbered more than 200. It typically has a long-term lease for each restaurant location and depreciates the cost ofbuilding a restaurant over the life of the lease.i (Click the icon to view the planning information.)(Click the icon to view the building andequipment information.)i (Click the icon to view Form 10-K excerpts related to property and equipment.)Assume that The Cheesecake Factory paid cash for all costs of building and equipping its new restaurant in Pittsburgh.How will Cheesecake Factory's total equity be impacted by this event? (Ignore the impact of depreciation whenanswering this question.)A. Total equity will not be impacted by this transactionB. Will increase total equityC. Will decrease total equityD. Not enough information given to determine impact on total equity

The effects of a transaction can have an impact over two accounts of a company it can be a contra…

Assume that The Cheesecake Factory paid cash for all costs of building and equipping its new restaurant in Pittsburgh. How will Cheesecake Factory's total equity be impacted by this event? (Ignore the impact of depreciation when answering this question.)

Assume that The Cheesecake Factory paid cash for all costs of building and equipping its new restaurant in Pittsburgh. How will Cheesecake Factory's total equity be impacted by this event? (Ignore the impact of depreciation when answering this question.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 84TA

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