Exhibit 10.3 presents a partial balance sheet for Hargon, Inc., a creator and manufacturer of biotechnology pharmaceutical products, for December 31, 2012 and 2013.
a. Does Hargon likely recognize depreciation on the amount in the Construction-in-Progress account each year? Explain.
b. Hargon depreciates its assets using the straight-line method and recognized $593 million of depreciation during 2013. Compute the average total life and average age of Amgen€™s depreciable assets for 2013.
c. Did Hargon appear to dispose of any depreciable assets during 2013? Explain.
d. Describe the likely reasons that Hargon treats Developed Product Technology, Core Technology, Trade Name, and Acquired Technology Rights as intangibles subject to amortization. Consider each of these four items separately.

e. Hargon uses the straight-line amortization method and recognized $370 million of amortization or 2013. Compute the average total life and average age of Hargon€™s intangibles subject to amortization for 2013.
f. Describe the likely reasons why Developed Product Technology decreased from $3,077 million to $2,877 million during 2013, whereas the amounts for Core Technology and
Trade Name remained the same.
g. Given the nature of Hargon€™s business, suggest the likely items that comprise Goodwill on the balance sheet.
h. The income statement of Hargon (not reported) shows Interest Expense€”Net. Based on the information in Exhibit 10.3, what item has Hargon likely netted against interestexpense?

Partial Balance Sheet for Hargon, Inc (all dollar amounts in millions) EXHIBIT 10.3 December 31, 2013 December 31, 2012 9,235 Land. 398 2,776 4,243 1,271 8,688 294 2,485 3,584 958 Total Land, Buildings, and Equipment. 7,321 (2.283) Total Land, Buildings, and Equipment Net. 5,921 Intangibles Subject to Amortization: 2,877 1,348 190 350 454 5,219 1,472 3,747 11,302 1,106 3,077 1,348 190 335 4,950 (1,208) 3,742 10,495 787 $29,297 Total Intangibles Subject to Amortization. . Less Accumulated Amortization. . Total Intangibles Subject to Amortization-Net... GoodwillWPw..W