The following data come from the 2007 financial statements of Ford Motor Company:

1. Estimate the book value of property and equipment disposed of during 2007.
2. Assume that a half-year's depreciation is taken on all assets acquired and disposed of during the year. Estimate the average depreciation life of Ford's property and equipment. Assume that none of the disposals was land, and eliminate the land balance when estimating the average depreciation life.
3. Estimate the average age of property and equipment (excluding land) owned by Ford as of December 31,2007.

Transcribed Image Text:

(all dollar amounts are in millions) Land Buildings and land improvements Construction in progress 2007 2006 $ 764 $ 802 13,719 43,913 2,224 14.402 2.031 $62.500 60,658 Accumulated depreciation $25.939 $ 25,675 Statement of Cash Flows for 2007 Operating activities: 3.474 Investing activities: Capital expenditures (5.971)