Fsa-Homework5-7

2702 Words Mar 2nd, 2015 11 Pages
HW No. 5
Answer the following questions from the textbook:

E6 - 35
Estimating Useful Life and Percent Used Up
The property and equipment footnotes from the Deere & Company balance sheet follows
The property and Depreciation A summary of property and equipment at October 31 follows:

Property and Equipment (millions) | Useful Lives (years) | 2010 | 2009 |
Land | | $113 | $1,166 |
Buildings and building equipment | 23 | 2,226 | 2,144 |
Machinery and equipment | 11 | 3,972 | 3,826 |
Dies, patterns, tool, etc. | 7 | 1,105 | 1,081 |
All other | 5 | 685 | 672 |
Construction in process | | 478 | 362 |
Total at cost | | 8,579 | 8,501 |
Less accumulated depression | | 4,856 | 4,744 |
Total | | $3,723 |
…show more content…
Is the equipment impaired? Show supporting computations.
d. If the equipment is impaired at the end of the fourth year, compute the impairment loss.

P6 – 42
Estimating Useful Life and Percent Used Up
The property and equipment section of the Abbott Laboratories 2010 balance sheet follows.

Property and equipment, at cost
($thousands) 2010 2009 2008

Land | $648,988 | | $546,204 | | $509,606 |
Buildings | 4,334,236 | | 4,010,439 | | 3,698,861 |
Equipment | 11,813,618 | | 11,325,450 | | 10,366,267 |
Construction in progress | 577,460 | | 604,813 | | 613,939 |
| 17,374,302 | | 16,486,906 | | 15,189,673 |
Less: accumulated depreciation and
amortization 9,403,346 8,867,417 7,969,507
Net property and equipment $7,970,956 $7,619,489 $7,219,166

The company also provides the following disclosure relating to the useful lives of its depreciable assets
Property and Equipment—Depreciation and amortization are provided on a straight-line basis over the estimated useful fives of the assets. The following table shows estimated useful lives of property and equipment.
Classification Estimated Useful Lives…

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