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Mr. Alam owns and operates a small delivery business called Planet Express. The business works...

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Accounting

Mr. Alam owns and operates a small delivery business called Planet Express. The business works in the Ottawa area and delivers small to medium size packages. Mr. Alam has purchased a fleet of new delivery vehicles to grow the size of the business and perhaps expand into the Toronto area. As part of the fleet of vehicles, Mr. Alam has included his personal car alongside the vehicles as it helps him get to and from work from home each day. Each vehicle was purchased for $20,000 and is recorded this way, but his car was originally purchased for $30,000, but was recorded as $8,000 since that is what it was worth when it was added to the vehicle assets account. Mr. Alam is confident this makes sense and has his accountant finish up the accounts. 1)What are the GAAP(s) that have been violated (if any) and explain why (or why these are fine)? 2)What would you recommend Mr. Alam do differently (if any change at all)?

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