Description: In 1984, Paul Newman turned over his Rolex watch to his daughter’s college boyfriend, James Cox, all because Cox told Newman he didn’t have a watch when Newman asked him the time. The watch had been a gift from Newman’s wife, Joanne Woodward, during the filming of a 1960s race car movie. This past week, the watch sold for a record $17.8 million at auction, proceeds going to benefit the Nell Newman Foundation.

Date: October 27, 2017

Source: people.com

Link: http://people.com/style/paul-newmans-rolex-sells-auction/amp/

Discussion Points:

1) What determines the price customers are willing to pay for a one-of-a-kind auction item such as Paul Newman’s Rolex watch?

2)  Wiley’s Financial Accounting: Tools for Business Decision Making discusses various costing models for inventory in Chapter 6. If you were a dealer in luxury goods, such as Rolex watches, what costing model would you be likely to adopt?

3)  Notice from the article that the proceeds from the watch benefited a charitable foundation. Which of Wiley’s accounting textbooks – featured under the banner Canadian Accounting Products accompanying this article –  would provide you with guidance on the accounting considerations for not-for-profit organizations?