The financial statements of Apple Inc. are presented in Appendix A. Instructions efor accessing and using the company’s complete annual report, including the notes to the financial statements, are also provided in Appendix A.

Instructions Answer the following questions.

(a) What were the total cost and book value of property, plant, and equipment at September 27, 2014?

(b) Using the notes to the financial statements, what method or methods of depreciation are used by Apple for financial reporting purposes?

(c) What was the amount of depreciation and amortization expense for each of the 3 years 2012-2014? (Hint: Use the statement of cash flows.)

(d) Using the statement of cash flows, what are the amounts of property, plant, and equipment purchased in 2014 and 2013?

(e) Using the notes to the financial statements, explain how Apple accounted for its intangible assets in 2014.