Refer to the Target Corporation linancial statements in Appendix A. and answer the following questions.

Required 1. Which depreciation method does Target use for reporting in the financial statements? What type of depreciation method does the company probably use for income tax pur- poses? Why is this method preferable for tax purposes? 2. Depreciation and amortization expense is embedded in the selling, general, and adminis- trative expense amounts listed on the income statement. The statement of cash flows gives the amount of depreciation and amortization expense. What was the amount of depreciation and amortization for fiscal year 1999? Record Target's depreciation and amortization expense for 1999. 3. The statement of cash flows reports the purchases of plant assets and the proceeds (sale prices) received on disposal of plant assets. How much were Target's plant asset acquisi- tions during 1999? Journalize the company's acquisition of plant assets. 4. How much cash did Target receive on the sale of plant assets during 1999? Assume the plant assets that were sold had a cost of $988 million and accumulated depreciation of $697 million. Record the sale of these plant assets. How much was the gain or loss on the sale of plant assets during the year?