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Estimating Useful Life and Percent Used Up The property and equipment footnote from Tesla follows. Assume that 25% of the amount classified as "Land and buildings" pertains to the cost of the Land.

Property and Depreciation Our property, plant and equipment, net, consists of the following (in thousands):

December 31	2018	2017
*Weighted averages
Machinery, equipment, vehicles and office furniture	$6,328,966	$4,251,711
Tooling	1,397,514	1,255,952
Leaseholder improvements	960,971	789,751
Land and buildings	4,047,006	2,517,247
Computer equipment, hardware and software	487,421	395,067
Construction in progress	807,297	2,541,588
	14,029,175	11,751,316
Less accumulated depreciation	(2,699,098)	(1,723,794)
Total	$11,330,077	$10,027,522

Depreciation expense during the years ended December 31, 2018, 2017, and 2016 was $1.11 billion, $769.3 million, and $477.3 million, respectively. a. Compute the average useful life of Teslas depreciable assets at year-end 2018. Round answer to one decimal place. Answer

years

b. Estimate the percent used up of Teslas depreciable assets at year-end 2018. Round answer to one decimal place (ex: 0.2345 = 23.5%) Answer

Answer to Question A) = 9.3 years

Answer to Question B) = 26%

	2018	2017
	Machinery, equipment, vehicles and office furniture	6,328,996	4,251,711
	Tooling	1,397,514	1,255,952
	Leaseholder improvements	960,971	789,751
	buildings	3,035,254.50	1,887,935.25
Computer equipment, hardware and software	487,421	395,067
Total	12,210,156.50	8,580,416.25
Accumulated Depreciation for 2018	2,699,098.00
Depreciation Expense for 2018	1,110,000.00
Question a)	[(12210156.5+8580416.25)/2] = 10,395286.38
	(10,395,286.38/1,110,000) = 9.3 years
Question b)	[(12210156.5+8580416.25)/2] = 10,395286.38
	(2,699,098/10,395,286.38) = .25963 = 26%