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Please answer, will rate! Exercise 2 - T he composition of property, plant and equipment: Below is information on the property and equipment of Amazon.com,

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Please answer, will rate!

Exercise 2 - T he composition of property, plant and equipment: Below is information on the property and equipment of Amazon.com, Inc. for the year ended December 31, 2017: Amount (in millions Cost of property and equipment (12/31/2016 Accumulated depreciation (12/31/2016) Cost of property and equipment (12/31/2017 Accumulated depreciation (12/31/2017 Depreciation expense in 2017 Capital expenditures in 2017 Cost of property and equipment sold in 2017 Accumulated depreciation of property and equipment sold in 2017 Cash received on property sold in 2017 $22,730 19,967 30,050 21,838 2,002 9,372 139 131 17 *Some numbers have been changed for the purpose of this exercise Required: (a) Record the journal entry for the disposal of property and equipment during 2017. (b) Compute the amount of property and equipment that Amazon.com wrote-off in 2017. Remember that write-offs only affect the cost of property and equipment. Useful formulas for this question (and in general): Composition of end-of-period gross PP&E balance: Beginning-of-period gross PP&E (cost PP&E purchases (Capex Disposals Write-offs due to impairment En d-of-period gross PP&E (cost Composition of end-of-period accumulated depreciation balance: Beginning-of-period accumulated depreciation Current period depreciation Accumulated depreciation of disposed assets End-of-period accumulated depreciation Exercise 2 - T he composition of property, plant and equipment: Below is information on the property and equipment of Amazon.com, Inc. for the year ended December 31, 2017: Amount (in millions Cost of property and equipment (12/31/2016 Accumulated depreciation (12/31/2016) Cost of property and equipment (12/31/2017 Accumulated depreciation (12/31/2017 Depreciation expense in 2017 Capital expenditures in 2017 Cost of property and equipment sold in 2017 Accumulated depreciation of property and equipment sold in 2017 Cash received on property sold in 2017 $22,730 19,967 30,050 21,838 2,002 9,372 139 131 17 *Some numbers have been changed for the purpose of this exercise Required: (a) Record the journal entry for the disposal of property and equipment during 2017. (b) Compute the amount of property and equipment that Amazon.com wrote-off in 2017. Remember that write-offs only affect the cost of property and equipment. Useful formulas for this question (and in general): Composition of end-of-period gross PP&E balance: Beginning-of-period gross PP&E (cost PP&E purchases (Capex Disposals Write-offs due to impairment En d-of-period gross PP&E (cost Composition of end-of-period accumulated depreciation balance: Beginning-of-period accumulated depreciation Current period depreciation Accumulated depreciation of disposed assets End-of-period accumulated depreciation

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