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 Land $114 $120 Buildings and building equipment 23 2,572 3,037 Machinery and equipment 11 4,611 5,089 Dies, patterns, tools, etc 8 1,567 1,552 All other 5 875 889 Construction in progress 345 530 Total at cost 10,084 11,217 Less accumulated depreciation 5,846 5,694 Total $4,238 $5,523 *Weighted averages 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 $637 million, respectively. a. Compute the average useful life of Deere’s depreciable assets at year-end 2015. Round answer to one decimal place. Answer years b. Estimate the percent used up of Deere’s depreciable assets at year-end 2015. Round answer to one decimal place (ex: 0.2345 = 23.5%) Answer %
Estimating Useful Life and Percent Used Up The property and equipment footnote from the Deere & Company Equipment and Operations segment follows. Property and Depreciation A summary of property and equipment at October 31 follows. Useful Lives* Property and Equipment ($ millions) (Years) 2015 2014 Land $114 $120 Buildings and building equipment 23 2,572 3,037 Machinery and equipment 11 4,611 5,089 Dies, patterns, tools, etc 8 1,567 1,552 All other 5 875 889 Construction in progress 345 530 Total at cost 10,084 11,217 Less accumulated depreciation 5,846 5,694 Total $4,238 $5,523 *Weighted averages 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 $637 million, respectively. a. Compute the average useful life of Deere’s depreciable assets at year-end 2015. Round answer to one decimal place. Answer years b. Estimate the percent used up of Deere’s depreciable assets at year-end 2015. Round answer to one decimal place (ex: 0.2345 = 23.5%) Answer %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Estimating Useful Life and Percent Used Up
The property and equipment footnote from the Deere & Company Equipment and Operations segment follows.
Property and Depreciation A summary of property and equipment at October 31 follows.
| Useful Lives* | |||
|---|---|---|---|
| Property and Equipment ($ millions) | (Years) | 2015 | 2014 |
| Land | $114 | $120 | |
| Buildings and building equipment | 23 | 2,572 | 3,037 |
| Machinery and equipment | 11 | 4,611 | 5,089 |
| Dies, patterns, tools, etc | 8 | 1,567 | 1,552 |
| All other | 5 | 875 | 889 |
| Construction in progress | 345 | 530 | |
| Total at cost | 10,084 | 11,217 | |
| Less |
5,846 | 5,694 | |
| Total | $4,238 | $5,523 | |
| *Weighted averages |
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 average useful life of Deere’s
Round answer to one decimal place.
Answer
years
b. Estimate the percent used up of Deere’s depreciable assets at year-end 2015.
Round answer to one decimal place (ex: 0.2345 = 23.5%)
Answer
%
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