What was the depreciation expense for Cornwell Quality Tools in 2023?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
Property, plant, and equipment are recorded at cost. Major additions and improvements are charged to the property accounts while replacements, maintenance, and repairs which do not improve or extend the lives of the respective assets, are expensed currently. When property is retired or otherwise disposed of, the cost of the property is removed from the asset account, accumulated depreciation is charged with an amount equivalent to the depreciation provided, and any resulting gain or loss is charged or credited to operations.
Depreciation has been provided using the straight-line method over the estimated useful lives of the assets as follows:
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the depreciation expense for Cornwell Quality Tools in 2023 is not explicitly stated. However, the document does detail how Cornwell Quality Tools handles depreciation of property, plant, and equipment. These assets are recorded at cost, and depreciation is calculated using the straight-line method over the estimated useful lives of the assets.
The FDD mentions that major additions and improvements to property are charged to the property accounts, while replacements, maintenance, and repairs that do not extend the life of the assets are expensed. When property is retired or disposed of, the cost is removed from the asset account, accumulated depreciation is charged, and any gain or loss is recorded in operations.
While the exact depreciation expense for 2023 isn't provided, prospective franchisees should note that Cornwell Quality Tools uses the straight-line depreciation method, which is a common and straightforward accounting practice. To obtain the specific depreciation expense for 2023, a potential franchisee should consider asking Cornwell Quality Tools directly for this information during their due diligence process.