Examine the excerpt of a footnote from Albrecht Corporation’s September 30, 2018, annual report to follow.

1. What are Albrecht’s largest two categories of property and equipment as of September 30, 2018? Describe in general terms the types of expenditures included in these categories.

2. What was Albrecht’s gross cost of property and equipment at September 30, 2018? What was the book value of property and equipment on this date? Why is book value less than cost?

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A1 Balances of Major Classes of Property and Equipment Are as Follows (in thousands) Sep. 30, 2018 Sep. 30, 2017 76,592 $ 2,219,765 24,872 1,580,325 55,236 3,956,790 (1,877,967) $ 2,078,823 $ 1,855,166 2 3 Land 4 Buildings and leasehold improvements 5 Capitalized real estate leases 6 Fixtures and equipment 7 Construction in progress and equipment not yet in service 48,923 1,958,612 24,263 1,408,779 114,599 3,555,176 (1,700,010) 9 Less accumulated depreciation and amortization 10 11