Answered step by step
Verified Expert Solution
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?
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 valueStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started