Reconstruction of Plant Asset Transactions The Ford Motor Company's footnotes included (S in millions): Ford Motor Company Property December 31 2003 2002 Land, plant, and equipment $60,113 $52,981 Less accumulated depreciation (30,112) (26,568) Net land, plant, and equipment 30,001 26,413 Special tools, net 11,992 9,939 Net property $41,993 $36,352 The notes to the income statement for 2003 revealed depreciation and amortization of $5,472 million. The account Special Tools, net is increased by new investments in tools, dies, jigs, and fixtures neces- sary for new models and production processes. Ford then amortizes these investments over various periods and reduces the account directly. Hint: Analyze with the help of T-accounts. 1. Assume that Ford spent $3,000 million on special tools in 2003. There were no disposals of spe- cial tools. How much amortization did Ford record on special tools in 2003? 2. Given your answer to requirement 1, estimate the cost of the new acquisitions of land, plant, and equipment. Assure all disposals of plant and equipment involved fully depreciated assets with zero book value.