Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Could you please help me to solve this? The Ford Motor Company's footnotes included the following ($ in millions): The notes to the income statement

Could you please help me to solve this? image text in transcribed

The Ford Motor Company's footnotes included the following ($ in millions): The notes to the income statement for 2011 revealed depreciation and amortization expens of $3.533 million. The account Special Tools, net is increased by new investments in tool dies, jigs, and fixtures necessary for new models and production processes. Ford then amortize these investments over various periods and reduces the account directly. When special tools ar disposed of, the account is reduced by the net book value. (Note that Ford uses the term amo tization rather than depreciation for the decline in the carrying amount of these special tools.) Assume that Ford spent $2,000 million on special tools in 2011. The company disposed of special tools with a net book value of $700 million. How much amortization did Ford record on special tools in 2011? Given your answer to requirement 1, estimate the cost of the new acquisitions of land, plant, and equipment. Assume all disposals of plant and equipment involved fully depreciated assets with zero book value

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Finance: An Object-Oriented Approach In C++

Authors: Erik Schlogl, Dilip B. Madan

1st Edition

1584884797, 978-1584884798

More Books

Students also viewed these Finance questions

Question

3 When might constructivist view of self be not relevant and why?

Answered: 1 week ago