Question
Estimating Useful Life and Percent Used Up The property and equipment footnote from the Deere & Company Equipment and Operation segment follows. Property and Depreciation
Estimating Useful Life and Percent Used Up The property and equipment footnote from the Deere & Company Equipment and Operation segment follows. Property and Depreciation A summary of property and equipment at October 31 follows.
Useful Lives* | |||
---|---|---|---|
Property and Equipment ($ millions) | (Years) | 2015 | 2014 |
*Weighted averages | |||
Land | $114 | $120 | |
Buildings and building equipment | 23 | 3,016 | 3,037 |
Machinery and equipment | 11 | 5,055 | 5,089 |
Dies, patterns, tools, etc | 8 | 1,567 | 1,552 |
All other | 5 | 875 | 889 |
Construction in process | 345 | 530 | |
Total at cost | 10,972 | 11,217 | |
Less accumulated depreciation | 5,846 | 5,694 | |
Total | $5,126 | $5,523 |
Total property and equipment additions in 2015, 2014 and 2013 were $666 million, $1,016 million and $1,158 million, and depreciation was $692 million, $696 million and $637 million, respectively.
a. Compute the estimated useful life of Deeres depreciable assets at year-end 2015. Round answer to one decimal place.
b. Estimate the percent used up of Deeres depreciable assets at year-end 2015. Round answer to one decimal place (ex: 0.2345 = 23.5%)
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