Realized gains and losses from the sale of available for sale securities are determined on a specific identification basis. Wow cost that is deemed to be other than temporary results in a reduction in carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. Dividend and interest income are recognized when earned. Inventories - Merchandise inventories are stated at the lower of cost or market.
Cost is determined by the first-in, first out basis using the retail method.
Property and Equipment - Property and equipment are recorded at cost. Amortization of leasehold improvements is computed on the straight-line method based upon the shorter of the estimated useful lives of the assets or the terms of the respective leases. Goodwill - Goodwill represents the excess of purchase price over the fair value of net assets acquired. The Company assesses the recoverability of this intangible asset by determining whether the amortization of the goodwill balance over its remaining life can be recovered through undiscounted future operating cash grows of the acquired operation. The amount of goodwill impairment, if any, is measured based on projected discounted future operating cash flows using a discount rate reflecting the Company's average cost of funds.