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) Land Buildings and building equipment Machinery and equipment Dies, patterns, tools, etc All other Construction in progress Total at cost Less accumulated depreciation Total *Weighted averages 23 11 8 5 2015 2014 $114 $120 3,238 3,037 5,277 5,089 1,567 1,552 875 889 345 530 11,416 11,217 5,846 5,694 $5,570 $5,523 Total property and equipment additions in 2015, 2014 and 2013 were $666 million, $1,016 million and $1,158 million, and depr $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. 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%)

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) Land Buildings and building equipment Machinery and equipment Dies, patterns, tools, etc All other Construction in progress Total at cost Less accumulated depreciation Total *Weighted averages 23 11 8 5 2015 2014 $114 $120 3,238 3,037 5,277 5,089 1,567 1,552 875 889 345 530 11,416 11,217 5,846 5,694 $5,570 $5,523 Total property and equipment additions in 2015, 2014 and 2013 were $666 million, $1,016 million and $1,158 million, and depr $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. 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%)

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.1DC

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Using the following information: A. make the December 31 adjusting journal entry for depreciation B. determine the net book value (NBV) of the asset on December 31 Cost of asset, $250,000 Accumulated depreciation, beginning of year, $80,000 Current year depreciation, $25,000
Estimating Useful Life and Percent Used UpThe property and equipment footnote from the Deere & Company Equipment and Operations segment follows.Property and Depreciation A summary of property and equipment at October 31 follows. Useful Lives* Property and Equipment ($ millions) (Years) 2015 2014 Land $114 $120 Buildings and building equipment 23 2,794 3,037 Machinery and equipment 11 4,833 5,089 Dies, patterns, tools, etc 8 1,567 1,552 All other 5 875 889 Construction in progress 345 530 Total at cost 10,528 11,217 Less accumulated depreciation 5,846 5,694 Total $4,682 $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 $637 million, respectively.a. Compute the average useful life of Deere’s depreciable assets at year-end 2015. Round answer to one decimal place.Answer years…
Estimating Useful Life and Percent Used UpThe property and equipment footnote from the Deere & Company Equipment and Operations segment follows.Property and Depreciation A summary of property and equipment at October 31 follows. Useful Lives* Property and Equipment ($ 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.…
A company maintains its fixed assets at cost. Depreciation provision accounts for each asset are kept. At 31st December 2018 the position was as follows: (1) The following additions were made during the financial year ended 31st December 2019: machinery ₤2,480, office furniture ₤320. (2) Some old machines bought in 2015 for ₤2,800 were sold for ₤800 during the year. (3) The rates of depreciation are: machinery - 10 per cent, office equipment - 5 per cent, using the straight line basis, calculated on the assets in existence at the end of each financial year irrespective of date of purchase. Required:Show the asset and depreciation accounts for the year ended 31st December 2019 and the statement of financial position entries (extract) at that date.
On September 16, 2015, Familiar 1 Company purchased machinery for P 7,600,000. Residual value was estimated to be P 400,000. The machinery is depreciated over eight years using the sum of years’ digits method. Depreciation is computed on the basis of the nearest full month. What amount should be recorded as depreciation 2016? a. 1,636,120 b. 1,553,800 c. 1,550,000 d. 1,400,000
The following data relate to the Machinery account of Eshkol, Inc. at December 31, 2020. Aug. Machinery Aug.00AAug.00 Aug. Aug.0BAug.0 Aug. Aug.0CAug.0 Aug. Aug.000DAug.000 Original cost $46,000 $51,000 $80,000 $80,000 Year purchased 2015 2016 2017 2019 Useful life 10 years 15,000 hours 15 years 10 years Salvage value $ 3,100 $ 3,000 $ 5,000 $ 5,000 Depreciation method Sum-of-the-years’-digits Activity Straight-line Double-declining-balance Accum. depr. through 2020* $31,200 $35,200 $15,000 $16,000 *In the year an asset is purchased, Eshkol, Inc. does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Eshkol, Inc. takes a full year’s depreciation on the asset. The following transactions occurred during 2021. a. On May 5, Machine A was sold for $13,000 cash. The company’s bookkeeper recorded this retirement in the following manner in the cash receipts journal.…
IThe following information applies to the questions displayed below) Solich Sandwich Shop had the following long-term asset balances as of December 31, 2015 Accumulated Depreciation Book Value Cost 85,000 85,000 Land 450.000 $085,500 364,500 Building (48,000) 250,000 Equipment 202,000 Patent 200.000 120,000 (80,000) Solich purchased all the assets at the beginning of 201313 years ago). The bullding is depreciated over a 20. year service life using the double-decllning balance method and estimatlng no residual value. The equipment is depreclated over a 10-year useful life usIng the straight-llne method with an estimated residual value of $10,000. The patent ls estimated to have a five-year service life with no residual value and Is amortized using the straight-line method. value 10.00 points Required: 1. For the year ended December 31, 2015, record depreciation expense for buildings and equipment Land is not depreciated. (If no entry is required for a transaction/event, select "No…
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Estimating Useful Life and Percent Used UpThe property and equipment section of the lululemon athletica 2018 balance sheet follows. Property and Equipment (in thousands) Feb. 3, 2019 Jan. 28, 2018 Land $78,636 $83,048 Buildings 38,030 39,278 Leasehold improvements 362,571 301,449 Furniture and fixtures 103,733 91,778 Computer hardware 69,542 61,734 Computer software 230,689 173,997 Equipment and vehicles 15,009 14,806 Work in progress 74,271 51,260 Property and equipment, gross 972,481 817,350 Accumulated depreciation (405,244) (343,708) Property and equipment, net $567,237 $473,642 Depreciation expense related to property and equipment was $122.4 million and $108.00 million, for the years ended February 3, 2019, and January 28, 2018, respectively.Requiredc. Compute the estimated percent used up of lululemon’s depreciable assets.Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). Answer%
Estimating Useful Life and Percent Used UpThe property and equipment section of the lululemon athletica 2018 balance sheet follows. Property and Equipment (in thousands) Feb. 3, 2019 Jan. 28, 2018 Land $78,636 $83,048 Buildings 38,030 39,278 Leasehold improvements 362,571 301,449 Furniture and fixtures 103,733 91,778 Computer hardware 69,542 61,734 Computer software 230,689 173,997 Equipment and vehicles 15,009 14,806 Work in progress 74,271 51,260 Property and equipment, gross 972,481 817,350 Accumulated depreciation (405,244) (343,708) Property and equipment, net $567,237 $473,642 Depreciation expense related to property and equipment was $122.4 million and $108.00 million, for the years ended February 3, 2019, and January 28, 2018, respectively.Requireda. Consider the level of the various PPE components. Does it seem likely that the company manufactures its own inventory? Answer b. Compute the estimated useful life of lululemon’s depreciable…
Estimating Useful Life and Percent Used UpThe property and equipment section of the lululemon athletica 2018 balance sheet follows. Property and Equipment (in thousands) Feb. 3, 2019 Jan. 28, 2018 Land $78,636 $83,048 Buildings 38,030 39,278 Leasehold improvements 362,571 301,449 Furniture and fixtures 103,733 91,778 Computer hardware 69,542 61,734 Computer software 230,689 173,997 Equipment and vehicles 15,009 14,806 Work in progress 74,271 51,260 Property and equipment, gross 972,481 817,350 Accumulated depreciation (405,244) (343,708) Property and equipment, net $567,237 $473,642 Depreciation expense related to property and equipment was $122.4 million and $108.00 million, for the years ended February 3, 2019, and January 28, 2018, respectively.Requireda. Consider the level of the various PPE components. Does it seem likely that the company manufactures its own inventory? Answer b. Compute the estimated useful life of lululemon’s depreciable…