FedEx FedEx delivers packages around the world. To accomplish this task, FedEx has made huge investments in long-term assets.

1. Identify what you consider to be the major long-term assets of FedEx. Review the information shown below from FedEx’s balance sheet (numbers are in millions) to see how well you did.

2. FedEx uses the straight-line depreciation method in depreciating most of its assets. For each major category—aircraft and related equipment, package handling and ground support equipment, computer and electronic equipment, vehicles (mainly trucks and buildings), and facilities and other—provide an estimate (or a range) as to what you would deem a reasonable useful life for each category.
3. Using the information above, compute the accumulated depreciation associated with the property and equipment sold during 2005 given that depreciation for the year was $1.438 billion.

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May 31 Property and Equipment, at Cost Aircraft and related equipment.. Package handling and ground support equipment Computer and electronic equipment Vehicles Facilities and other Less accumulated depreciation and amortization Net property and equipment... 2005 2004 $ 7,610 $ 7,001 3,366 3,395 3,893 3,537 1,994 1,919 5,154 4,459 $22,017 $20,311 12,374 11,274 $ 9,643 $ 9,037