Chapter 11, Problem 16ICA

To determine

Depreciation: Depreciation can be defined as the reduction in the value of asset due to its wear and tear.

(a) To determine: The descriptions used by S&M Co. in its statement of financial position to classify its property, plant, and equipment.

To determine

(b) To determine: The method of depreciation S&M Co. uses to depreciate its property, plant, and equipment.

To determine

(c) To determine: The estimated useful lives method S&M uses to depreciate its property, plant, and equipment.

To determine

(d) To determine: The amount of depreciation charged to its income statement in 2014 and 2013.

To determine

(e) To determine: The capital expenditures for PPE for the two years.