Refer to Apple’s financial statements in Appendix A to answer the following.

1. What percent of the original cost of Apple’s Property, Plant and Equipment account remains to be depreciated as of (a) September 29, 2018, and (b) September 30, 2017? Assume these assets have no salvage value and the entire account is depreciable. Hint: Accumulated Depreciation is listed under “Property, Plant and Equipment” in the notes to Apple’s financial statements in Appendix A.

2. Much research and development are needed to create the next iPhone. Does Apple capitalize and amortize research and development costs over the life of the product, or are research and development costs expensed as incurred?

3. Compute Apple’s total asset turnover for the year ended (a) September 29, 2018, and (b) September 30, 2017. Total assets at September 24, 2016, are $321,686 ($ millions).

4. Using the results in part 3, is the change in Apple’s asset turnover favorable or unfavorable?