Financial information for American Eagle is presented in Appendix A at the end of the book.

Required:
1. The summary of significant accounting policies is located in note 2 to the financial statements. Locate the section on property and equipment. What depreciation method does American Eagle use? What are the estimated useful lives for buildings, leasehold improvements, and fixtures and equipment?
2. Find note 7 entitled Property and Equipment. What are the cost and the book value of property and equipment? What is the trend in depreciation expense for the past three years?
3. Find note 10 entitled Leases. Retail stores, like American Eagle, tend to lease rather than buy their stores. What is the most common term for the store leases? What are the future minimum lease obligations under operating leases at February 2, 2013?