Cain Company operates in both the beverage and entertainment industries. In June 2006, Cain purchased Good Time, Inc., which produces and distributes motion picture, television, and home video products and recorded music; publishes books; and operates theme parks and retail stores. The purchase resulted in $2.7 billion in goodwill. Since 2006, Cain has undertaken a number of business acquisitions and divestitures (sales of businesses) as the company expands into the entertainment industry. Selected data from a recent annual report are as follows (amounts are in U.S. dollars in millions)

Required:
1. Compute the cost of the property, plant, and equipment at the end of the current year. Explain your answer.
2. What was the approximate age of the property, plant, and equipment at the end of the current year?
3. Compute the fixed asset turnover ratio for the current year. Explain your results.
4. What is "excess of cost over fair value of assets acquired"?
5. On the consolidated statement of cash flows, why are the depreciation and amortization amounts added to income from continuingoperations?

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Property, Plant, Equipment, and Intangibles Current Prior From the Consolidated Balance Sheet Year Year $ 991 $1,272 Film costs, net of amortization Artists' contracts, advances, and other entertainment assets 761 645 2,733 3,076 Property, plant, and equipment, net Excess of cost over fair value of assets acquired 2,559 3,355 From the Consolidated Statement of Income $9,714 $10,644 Total revenues From the Consolidated Statement of Cash Flows $ 880 Income from continuing operations Adjustments: Depreciation 445 289 265 Amortization 208 190 (256) Other adjustments (summarized) (1,618) Net cash provided by continuing operations (241) 644 From the Notes to the Financial Statements $ 1,023 $1,178 Accumulated depreciation on property, plant, and equipment