Question: i asked this question earlier and th person got it wrong. please help! Part a Harley-Davidsons financial statements provide the following information (in millions of
i asked this question earlier and th person got it wrong. please help!
Part a
Harley-Davidsons financial statements provide the following information (in millions of dollars):
As of Dec 31 ($ in millions) 2017 2016
| Property, Plant and Equipment | 3100 | 3000 |
| (Less: Accumulated Depreciation) | -900 | -800 |
| Property, Plant and Equipment, net | 2200 | 2200 |
During 2017, Harley sold PP&E for $1,100 Million in cash. The property was originally purchased for $860 and had accumulated depreciation of $470 million. There were no asset write-offs during 2017.
How much depreciation expense did Harley record on its PP&E for the fiscal year ended 2017?
part B
How much PP&E did Harley purchase during the fiscal year ended 2017?
Part C
Suppose that because of trade issues, Harley must move much of its production to Europe. As a consequence, the value of their net PP&E falls to $500 million on January 1, 2018. What transaction would they record?
| Cash | + | Noncash Assets | - | Contra Assets | = | Liabilities | + | Shareholders Equity |
|---|
Part D
Suppose instead that on December 31, 2017, Harley-Davidson lengthens the depreciable lives of its PP&E by 5 years (but does not change salvage values). How would the following amounts for the fiscal year ended December 31, 2018 change as a result? For this part only, assume that Harley-Davidsons tax rate was 0.0%.
Net Income: Higher Lower The Same ?
Operating Cash Flows: Higher Lower The Same ?
Return on Equity: Higher Lower The Same ?
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