Interpreting and Applying Disclosures on Property and Equipment Following are selected disclosures from the 10-K report of
Question:
Interpreting and Applying Disclosures on Property and Equipment
Following are selected disclosures from the 10-K report of Facebook Inc. Facebook reported 2018 sales of $55,838 million.
Property and Equipment, Net
December 31, $ millions
2018 2017
Land $899 $798
Buildings 7,401 4,909
Leasehold improvements 1,841 959
Network equipment 13,017 7,998
Computer software, office equipment, and other 1,187 681
Construction in progress 7,228 2,992
Total 31,573 18,337
Less: Accumulated depreciation -6,890 -4,616
Property and equipment, net $24,683 $13,721
Depreciation expense on property and equipment was $3.68 billion and $2.33 billion during 2018 and 2017, respectively. (a) Compute the PPE turnover for 2018.
Round answer to one decimal place.
(b) Estimate the useful life, on average, for its depreciable PPE assets.
Round your answer to one decimal place.
years 5.2
(c) By what percentage are Facebook's assets "used up" at year-end 2018?
Round your answer to one decimal place.
36.3 %
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello