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1.50 Year Kan Company operates in both the beverage and entertainment industries. In June 2013, Karl purchased Good Time, Inc., which produces and distributes motion

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1.50 Year Kan Company operates in both the beverage and entertainment industries. In June 2013, Karl purchased Good Time, Inc., which produces and distributes motion picture, television, and home video products and recorded music, publishes books, and operates theme parks and retail stores. The purchase resulted in $27 billion in goodwill. Since then, Karl has undertaken a number of business acquisitions and divestitures (sales of businesses) as the company expands into the entertainment industry Selected data from a recent annual report are as follows (amounts are in US dollars in millions): Property, Plant, Equipment, and Intangibles from the Current Consolidated Balance Sheet Prior Year Film costs, net of amortization $ 1,272 $ 991 Artists' contracts, advances, and other entertainment assets 761 645 Property, plant, and equipment, net 2,23 2,559 Excess of cost over fair value of assets acquired 3,076 3.355 From the consolidated Statenent of Income Total revenues 9,714 10,644 From the consolidated Statement of Cash Flows Income from continuine operations 3 880 $ Adjustments Depreciation 289 Amortization Other adjustments (summarized) (1.610 (256) liet cash (used in provided by continuing operations (241) From the Notes to the Financial Statements Accumulated depreciation on property, plant, and equipent $ 1,178 $ 1,023 445 265 190 208 44 Required: 1. Compute the cost of the property, plant, and equipment at the end of the current year. (Enter ariswer values in million of dollars.) 2. What was the approximate age of the property, plant, and equipment at the end of the current year? (Round final answer to one decimal place.) 3. Compute the fixed asset turnover ratio for the current year. (Round your answer to 1 decimal place) 4. What is "excess of cost over falt value of assets acquired'? 5. On the consolidated statement of cash flows, why are the depreciation and amortization amounts added to Income from continuing operations?

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