Part A: Suppose that Petrobras assumes a zero salvage value for their "Equipment and other assets." For each $100 in new asset investments, what is the annual amount of depreciation expense charged to the income statement?

Part B: Suppose that other leading energy companies charge $12 in depreciation expense for each $100 invested in new equipment. Are Petrobras' depreciation policy assumptions materially different from those of their competitors? Support your answer.

(So I think that I need to divide the cost of the asset by the total life of the asset to get the answer to part A, but I have no idea what numbers I need to sure to do it or what the other companies have to do with anything. Please help)

Exhibit 10-1 Petrobras Disclosures Statements of Income Note 200 2007 Prapaid expenses ,395,879 1.429,829 Other currant assets 1,461,801 1,493,200 Revenues 18 3,494,430 2,417.659 63,575,278 53,373,766 Statements of Income Exchange and monetary variations, net 3,827,489 3,146,547) Noncurrent assets Administrative and general expanses December 31, 2008 and 2007 Long-term receivables Management and board of directors ram (35,792) (29,259) Trade accounts receivable, not 1,326,522 2,901,902 (In thousands of reais, except net income per share) Administrative 7 ,211,566) (6,398,633) Petroleum and alcohol account - STN 809,673 797,851 Taxes (862,766) (1,255,511) Marketable securities 10 4,066,280 3.922,370 Consolidated Cost of research and technological development 1,705,572) 1,712,338) Project financing 11.2 Statements of Income Note 2008 2007 Loss of recovery of assets (933,068) (446,129) Deposits in court 17 1,853,092 1,693,495 Exploratory costs for the extraction of crude oil and gas (3,494,258) 2,569,724) Prapaid expenses 1,400,072 1,514,301 Gross operating revenues Healthcare and pension plans 21 (1,427,395) (2,494,510) Advance for pansion plan 21 1,296,810 Other operating income (4,712,243) (5,188,393) Deferred income and social contribution taxes 20.3 10,238,308 8,333,490 Selling expenses (24,416,160) (30,175,121) Inventories 303,929 236,753 Products 266,217,208 218,050,202 Equity in income of subsidiaries and associated co Other long-term receivables 1.256,96 1,325,865 Equity in earnings (losses) of investments (874,218) (465,274) 21,254,843 22,022,837 Services, mainly freight 276,872 203,972 Income from operations before income and social contribution 48,204,799 35,539,287 taxes, employee and management profit sharing and Investments 13 5,106,495 7,822,074 266,494,080 218,254,174 inority interest Property plant, and equipment 190,754,167 139,940,726 cial contribution 2,876.775) Intangible assets 5,532,053 (51,375,544) 20.5 8,003,213 Sales charges (47,676,449) (4,169.529) Income tax 20.5 (11,792,449) (8,395,983) Deferred charges 3,469,846 2,536,344 Net operating revenues 215,118,536 170,577,725 Income before employees' and directors' profit-sharing 32,242,821 24,266,529 228,588,564 177.854,034 and minority interest Cost of products and services sold (141,623,359) (104,398,043) Employees' and directors' profit-sharing (1,344,526) (1,011,914) Gross profit 73,495,177 66,179,682 Income before minority interest 30,898,295 23,254,615 292,163,842 231,227,800 Minority interest 2,089,497 (1,742,826) Operating income (expenses) Net income for the year 32,987,792 21,511,789 San the accompanying notes to the finance Selling expenses (7,162,264) (6,059,734) Net income per share at the end of the year - RS 3,76 4.90 Son the accompanying notes to the financial statements. Property, Plant, and Equipment By Type of Asset Financial Consolidated Expenses 18 (4,193,135) (3,292,002) Balance Sheets 2008 2007 December 31, 2008 and 2007 Estimated Useful Accumulated (Continued) In thousands of roais) Life in Years Cost Doprociation Not Not Consolidated Buildings and improvements 25 to 40 9,382,619 (3,115,564 6,267,055 3,800,350 Assets Noto 2008 2007 Equipment and other assets 3 to 30 119,999,208 (55,854,051) 64,145,157 49,414,524 Current assets Land 1,138,720 1,138,720 854,848 Cash and cash equivalents 15,888,596 13,070,849 Matorial 6,034,143 6, 034, 143 4,247,098 Marketable sacuritios 288,751 589,788 Advances to suppliers 5,189,735 5,189,735 2,624,093 Trade accounts receivable, not 14,903,732 11,328,967 Expansion projects 99,238,898 59,238,898 39,964,366 Dividends receivable 20,101 80,596 Oil and gas exploration and production 83,883,258 (35,142,799) 48,740,459 39,035,447 Inventories 19.977.171 17,599,001 development costs (E&P) 284,866,581 (94,112,414) 190,754,167 139,940,726