Estimating Useful Life and Percent Used Up The property and equipment footnote from the Deere & Company
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Question:
Estimating Useful Life and Percent Used Up
The property and equipment footnote from the Deere & Company Equipment and Operations segment follows.
Property and Depreciation A summary of property and equipment at October 31 follows.
| Useful Lives* | | |
---|---|---|---|
Property and Equipment ($ millions) | (Years) | 2015 | 2014 |
*Weighted averages | | | |
Land | | $114 | $120 |
Buildings and building equipment | 23 | 3,460 | 3,037 |
Machinery and equipment | 11 | 5,499 | 5,089 |
Dies, patterns, tools, etc | 8 | 1,567 | 1,552 |
All other | 5 | 875 | 889 |
Construction in progress | | 345 | 530 |
Total at cost | | 11,860 | 11,217 |
Less accumulated depreciation | | 5,846 | 5,694 |
Total | | $6,014 | $5,523 |
Total property and equipment additions in 2015, 2014 and 2013 were $666 million, $1,016 million and $1,158 million, and depreciation was $692 million, $696 million and $637 million, respectively.
a. Compute the estimated useful life of Deere’s depreciable assets at year-end 2015.
b. Estimate the percent used up of Deere’s depreciable assets at year-end 2015.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
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