Question
a. What method of depreciation does Amazon.com use, and why isn't Depreciation Expense on the income statement? b. Note that each class of assets has
a. What method of depreciation does Amazon.com use, and why isn't "Depreciation
Expense" on the income statement?
b. Note that each class of assets has a separate "Accumulated Depreciation" contra-asset account. Further assume that Depreciation Expense related to the
"Technology and Infrastructure" class of assets for 2011 is $392 million. What other transaction related to this class of assets must have happened in 2011?
Requirement 3:
Briefly answer questions (a) and (b) above. In addition, draw a T-account (you
will need to determine which account to analyze in order to answer the above question!) to
support your response to question (b), highlighting the amount of the additional transaction.
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