Estimating Useful Life and Percent Used Up The property and equipment footnote from the Deere & Company Equipment and Operations segment follows. Property and Depreciation A summary of property and equipment at October 31 follows.   Useful Lives*     Property and Equipment ($ millions) (Years) 2015 2014 Land   $114 $120 Buildings and building equipment 23 2,572 3,037 Machinery and equipment 11 4,611 5,089 Dies, patterns, tools, etc 8 1,567 1,552 All other 5 875 889 Construction in progress   345 530 Total at cost   10,084 11,217 Less accumulated depreciation   5,846 5,694 Total   $4,238 $5,523 *Weighted averages         Total property and equipment additions in 2015, 2014 and 2013 were $666 million, $1,016 million and $1,158 million, and depreciation was $692 million, $696 million and $637 million, respectively. a. Compute the average useful life of Deere’s depreciable assets at year-end 2015. Round answer to one decimal place. Answer    years b. Estimate the percent used up of Deere’s depreciable assets at year-end 2015. Round answer to one decimal place (ex: 0.2345 = 23.5%) Answer   %

Financial Accounting: The Impact on Decision Makers
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Author:Gary A. Porter, Curtis L. Norton
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Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
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Estimating Useful Life and Percent Used Up
The property and equipment footnote from the Deere & Company Equipment and Operations segment follows.
Property and Depreciation A summary of property and equipment at October 31 follows.

  Useful Lives*    
Property and Equipment ($ millions) (Years) 2015 2014
Land   $114 $120
Buildings and building equipment 23 2,572 3,037
Machinery and equipment 11 4,611 5,089
Dies, patterns, tools, etc 8 1,567 1,552
All other 5 875 889
Construction in progress   345 530
Total at cost   10,084 11,217
Less accumulated depreciation   5,846 5,694
Total   $4,238 $5,523
*Weighted averages      

 

Total property and equipment additions in 2015, 2014 and 2013 were $666 million, $1,016 million and $1,158 million, and depreciation was $692 million, $696 million and $637 million, respectively.

a. Compute the average useful life of Deere’s depreciable assets at year-end 2015.

Round answer to one decimal place.
Answer

 

 years

b. Estimate the percent used up of Deere’s depreciable assets at year-end 2015.

Round answer to one decimal place (ex: 0.2345 = 23.5%)
Answer

 

%

 
 
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