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Problems and Cases 10.9 Store-Driven Forecasts. The Home Depot is a leading specialty retailer of hardware and home improvement products and is the second-largest retail
Problems and Cases 10.9 Store-Driven Forecasts. The Home Depot is a leading specialty retailer of hardware and home improvement products and is the second-largest retail store chain in the United States. It operates large warehouse-style stores. Assume in 2021 and 2022, The Home Depot invested in five new stores. The following table provides summary hypothetical data for The Home Depot. following hypothetical information relates to Intel's property, plant, and equipment for 2021 and 2022 : REQUIRED Assume that Intel depreciates all property, plant, and equipment using the straight-line depreciation method and zero salvage value. Assume that Intel spends $6,000 million on new depreciable assets in Year +1 and does not sell or retire any property, plant, and equipment during Year +1 . a. Compute the average useful life (in years, rounded to two decimals) that Intel used for depreciation in 2022. b. Project total depreciation expense for Year +1 using the following steps: (1) Project depreciation expense for Year +1 on existing property, plant, and equipment at the end of 2022 . (2) Project depreciation expense on capital expenditures in Year +1 assuming that Intel takes a full year of depreciation in the first year of service. (3) Sum the results of (1) and (2) to obtain total depreciation expense for Year +1. c. Project the Year +1 ending balance in property, plant, and equipment, both at cost and net of accumulated depreciation
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