Analyzing Clorox's Property, Plant, and Equipment Disclosures 1. Which depreciation method does Clorox use? Why do you think Clorox selected this method? 2. What are the useful lives of the various classes of Clorox's property, plant, and equipment? 3. a. Does Clorox report all of its depreciation expense in a single line item on its income statement? b. What amount did Clorox report as depreciation and amortization for 2021, 2020, and 2019? Do these amounts result in an increase to cash? 4. a. What amount does Clorox report for impairment and disposition losses of property, plant, and equipment for 2021, 2020, and 2019? Where are impairment losses reported? b. What is the conceptual justification for combining impairment and disposition losses? c. With regard to impairments, how does Clorox measure fair value, and how would this measurement be classified in the fair value hierarchy (Level 1, 2, or 3)?
Analyzing Clorox's Property, Plant, and Equipment Disclosures 1. Which depreciation method does Clorox use? Why do you think Clorox selected this method? 2. What are the useful lives of the various classes of Clorox's property, plant, and equipment? 3. a. Does Clorox report all of its depreciation expense in a single line item on its income statement? b. What amount did Clorox report as depreciation and amortization for 2021, 2020, and 2019? Do these amounts result in an increase to cash? 4. a. What amount does Clorox report for impairment and disposition losses of property, plant, and equipment for 2021, 2020, and 2019? Where are impairment losses reported? b. What is the conceptual justification for combining impairment and disposition losses? c. With regard to impairments, how does Clorox measure fair value, and how would this measurement be classified in the fair value hierarchy (Level 1, 2, or 3)?
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