Walgreens is a drugstore chain operating more than 8,200 stores in 50 states, the District of Columbia,
Question:
Total property, plant, and equipment ...... $ 15,834
Less: Accumulated depreciation ........ 4,308
$ 11,526
A footnote states that “depreciation is provided on a straight-line basis over the estimated useful lives of owned assets.” Annual depreciation expense is approximately $804 million. Assume a zero salvage value for all of the assets.
1. Estimate the average useful life of Walgreens depreciable assets.
2. Estimate the average age of Walgreens depreciable assets on August 31, 2011.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
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