Kosciusko Corporation is a manufacturing firm that has $3,600,000 of long-term assets that are used in operations. Following is the acquisition cost, accumulated depreciation, and depreciation expense for each asset through the end of 2009.

Required:
(a) Prepare the PP&E section of Kosciusko Corporation€™s balance sheet at the end of 2009.
(b) Why has no depreciation expense been recorded on the land owned by Kosciusko?
(c) Assuming that no PP&E assets have been acquired by Kosciusko during the year, what is the average useful life of each category of assets other than land?
(d) Assume that Kosciusko had acquired $60,000 of office furniture and $5,000 of delivery trucks during 2009. What is the capital spending to depreciation ratio for each of these two categories of assets? Discuss your assessment of this ratio.
(e) Besides the information you developed in parts (a) through (d), what other information regarding Kosciusko€™s PP&E assets is needed by decision makers who use the company€™s financial statements?

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Accumulated Depreciation Acquisition Depreciation Expense Description Cost through 2009 for 2009 S34,000 Office building $ 748,000 $230,000 Production 112,000 61,000 equipment 89,400 26,300 1,072,800 Office furniture 131,500 350,000 Delivery trucks 320,000 Land 125,000 40,000