Q1. Nizwa Corporation, an Omani affiliate of a major U.S.- based hotel chain, starts the calendar year with (60 million Omani Rivals (OMR) cash equity investment. It immediately acquires a refurbished...

Extracted text: Q1. Nizwa Corporation, an Omani affiliate of a major U.S.- based hotel chain, starts the calendar year with (60 million Omani Rivals (OMR) cash equity investment. It immediately acquires a refurbished hotel in Al Jabel Akhdar for OMR 45 million. Purchased furnishings OMR 10 million. Owing to a favorable tourist season, Nizwa Corporation's rental revenues were OMR 7.2 million for the year. Operating expenses of OMR 4.32 million together with rental revenues were incurred uniformly throughout the year. The building, comprising 80 percent of the original purchase price (balance attributed to land), has an estimated useful life of 20 years and is being depreciated in straight-line fashion. In addition to the information provided there, assume that Nizwa's construction cost index increased by 80 percent during the year, while the price of vacant land adjacent to Nizwa Corporation's hotel increased in value by90 percent Required: Prepare financial statements for Nizwa Corporation's first year of operations in terms of the historical-cost model and the historical-cost constant dollar model.