The Home Depot financial statements appear in Appendix A at the end of this textbook. Use these statements to answer the following questions and indicate where in the financial statements you found the information.

a. What depreciation method does Home Depot use for buildings, furniture, fixtures, and equipment? What are the useful lives over which these assets are depreciated?

b. From the notes to Home Depot’s financial statements, what can you learn about the company’s policy regarding impairment of plant assets?

c. Locate Home Depot’s balance sheet and find the section entitled “Property and Equipment, at cost.” As of January 31, 2010, determine the amount of the company’s investment in property and equipment and the amount of depreciation taken to date on those assets. Are these assets, taken as a whole, near the beginning or end of their estimated useful lives? Explain your answer.