1. What is the historic cost of IBMs plant and other property at the end of 2016?

2. How much of the plant and other property has been used up?

3. How much of the plant and other property is left to use?

4. Calculate the depreciation on the rental machines for 2016 if IBM uses the units of production method and the residual value is 40 million and the useful life is measured at 250,000 units and during 2016 32,000 units were used.

5. What would the journal entry be to record the sale of the rental machines on December 31, 2016 for $500 million in cash because IBM no longer thought they would be useful.

NOTEG. PROPERTY, PLANTANDEQUIPMENT $ in miions) At December 31 Land and land improvements Buildings and building improvements Plant, laboratory and of fice equipment Plantand other property-goss Less: Accu mulated depreclation Plant and other property-net Rental machines Less: Accu mulated depreciation Renta machines-net Total-net 2015 558 6,552 21,116 29,150 28,226 18,842 18,051 10,176 1,115 565 551 $10,830 $10,727 2016 506 6,326 22,318 10,308 984 461 523