Exhibit 10.4 presents a partial balance sheet for HP3, a creator and manufacturer of computer hardware and software and related services, for its fiscal years ending October 31, 2012 and 2013.
a. HP3 uses the straight-line method to depreciate its buildings, leasehold improvements, machinery, and equipment. It recognized depreciation expense of $1,922 million during fiscal 2013. Compute the average total life and average age of its depreciable assets during fiscal 2013.
b. Did HP3 appear to abandon or dispose of any depreciable assets during fiscal 2013?
Explain.

c. What is the likely rationale for treating Customer Contracts, Core Technology, Patents, and Product Trademarks as intangibles subject to amortization? Consider each of these four items separately.
d. HP3 uses the straight-line amortization method for intangibles subject to amortization and recognized $783 million of amortization during fiscal 2013. Compute the average total life and average age of intangibles subject to amortization for fiscal 2013.
e. HP3 acquired Casio Computer Company seven years ago. Why does HP3 treat the Casio brand name as an intangible not subject to amortization?
f. Did HP3 appear to make a corporate acquisition during fiscal 2013?Explain.

Partial Balance Sheet for HP3 (all dollar amounts in millions) EXHIBIT 10.4 October 31, 2013 October 31, 2012 $48,264 464 6,044 9,903 16,411 Less Accumulated Depreciation(8,613) 7,798 534 Buildings and Leasehold Improvements Machinery and Equipment. . .- . . . . . . . . 5,771 8,719 15,024 (8,161) 6,863 Intangibles Subject to Amortization: Customer Contracts, Customer Lists, and Distribution Agreements. 2,586 1,923 103 4,612 3,239 2,768 Developed and Core Technology and Patentsw.w... Total Intangibles Subject to Amortization... . . . . . Intangibles Subject to Amortization-NetwN. 115 6,122 () 3,465 () 2,682 2,657 1,930 Intangibles Not Subject to Amortization: 1,422 21,773 25,852 7,647 Total Assets .. ..$88,699 1,422 16,853 20,205 6,649 $81,981 Goodwill