Interpreting and Applying Disclosures on Property and Equipment

Following are selected disclosures from the Evett and Sternard Company $($a specialty chemical company$)200710-$K$.$

$(5-10)$; capitalized software $(5-7).$ The principal life used in determining the depreciation rate for leasehold improvements is the years remaining in the lease term or the useful life $($in years$)$ of the asset, whichever is shorter.

IMPAIRMENT OF LONG$-$LIVED ASSETS

million of fixed asset impairment charges.

$($a$)$ Compute the PPE $($land$,$ buildings and equipment$)$ turnover for $2007($Sales in $2007$ are $$8,897$ million$).($Round your answer to two decimal places.$)$

$($b$)$ Evett and Sternard reported depreciation expense of $$412$ million in $2007.$ Estimate the useful life, on average, for its depreciable PPE assets. $($Round your answer to two decimal places.$)$

years

$($c$)$ By what percentage are Evett and Sternard's assets "used up$"$ at year$-$end $2007?($Round your answer to two decimal places.$)$