Question:

Recall that Note 3 says the company depreciates its buildings and roof over a useful life of between 20 and 50 years. Using the table determine the AVERAGE cost of the Buildings over the fiscal year ending Feb 2, 2020. [Add together the beginning of the year cost value, and the end of the year cost value, and divide by 2]. Then divide this average cost by the fiscal 2020 depreciation expense for buildings, which is found on the table in the same column. How would you interpret the result (which is measured in the number of years)? Does your calculation fall within the range of 20 to 50 years?

1) Total costs of $67,923 for the land, building and roof also include racking, fixtures and other equipment that are in the process of being installed. The building itself is now substantially complete.

2) Recognized costs of $33,295 for the building and roof will start being depreciated as at January 30, 2017, which is when management deemed the building to be substantially available for use. Racking, fixtures and other equipment (including hardware and software) totalling $12,484 will be reclassified to store and warehouse equipment, computer equipment and computer software at a later date, once depreciation begins.

3 Summary of Significant Accounting Policies Property, plant and equipment Property, plant and equipment are carried at cost and depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Store and warehouse equipment 10 to 15 years Vehicles 5 years Building and roof 20 50 years Leasehold improvements Lease term Computer equipment 5 years 22,144 13,346 6 Property, Plant and Equipment Land') Building) 2) Store and warehouse equipment Computer equipment Vehicles Leasehold improvements Total $ $ $ Cost Balance January 31, 2016 316,349 24,596 4,349 249,887 595,181 Additions 45,779 34,012 1,163 37,130 153,574 Dispositions (36) (4,050) (947) (322) (5,355) Balance January 29, 2017 22,144 45,779 350,325 33,892 4,565 286,695 743,400 Accumulated depreciation Balance January 31, 2016 168,517 7,648 1,316 85,475 262,956 Depreciation 24,111 5,995 927 17,175 48,208 Dispositions (8) (4,050) (574) (221) (4.853) Balance January 29, 2017 192,620 9,593 1,669 102,429 306,311 Net book value Balance January 29, 2017 22,144 45,779 157,705 24,299 2,896 184,266 437,089 Cost Balance February 1, 2015 286,011 18,968 3,706 211,267 519,952 Additions 31,367 9,794 40,136 83.231 Dispositions (1,029) (4,166) (1,291) (1,516) (8,002) Balance January 31, 2016 316,349 24,596 4,349 249,887 595,181 Accumulated depreciation Balance February 1, 2015 147,677 8,018 1,308 72,3 320 Depreciation 21,576 3,796 810 40,328 Dispositions (736) (4,166) (802) (988) (6,692) Balance January 31, 2016 168,517 7,648 1,316 85,475 262,956 Net book value Balance January 31, 2016 147,832 16,948 3,033 164,412 332,225 1,934 14,146 6 Property. Plant and Equipment Land Building Store and warehouse equipment Computer equipment Vehicles Leasehold improvements Total 8 8 $ Cont Balance January 31, 2016 316,349 24.596 4.349 249.887 595.18: Additions 33,144 45.779 34.013 13.346 1,163 37.130 153.574 Disposition (36) (4.050) (947) (322) (5355) Balance January 29, 2017 22,144 45.779 350.325 33.892 4.565 286,695 743.400 Accumulated depreciation Balance January 31, 2016 168.517 7.648 1.316 89,475 269,956 Depreciation 24,111 5.995 927 17,175 48,208 Dispositions (8) (4.050) (574) (221) (4.853) Balance January 29, 2017 192,620 9.593 1,669 102,429 306,311 Net book value Balance January 29, 2017 29.144 45.779 157.705 24,299 2.896 184,266 437,089 Cost Balance February 1, 2015 286,011 18.968 3.706 211,267 519.95 Additions 31,367 9.794 1.934 40,136 83,231 Dispositions (1.029) (4.166) (1,291) (1.516) (8,002) Balance January 31, 2016 316,349 24.596 4.349 249,887 595.181 Accumulated depreciation Balance February 1, 2015 147,677 1.308 72.317 229.320 Depreciation 21.576 3.796 810 14,146 40.328 Dispositions (736) (4.166) (802) (988) (6,692) Balance January 31, 2016 168,517 7.648 85.475 262,956 Net book value Balance January 31, 2016 147.832 16,948 3.033 164,412 332,225 Total costs of $67.923 for the land, building and roof also include racking, fixtures and other equipment that are in the process of being installed. The building itself is now substantially complete. Recognised costs of $33.295 for the building and roof will start being depreciated as at January 30, 2017, which is when management deemed the building to be substantially available for use Racking fixtures and other equipment (including hardware and software) totalling $12,484 will be reclassified to store and warehouse equipment, computer equipment and computer software at ater date, onde depreciation begins 11 8.018 III 1.316 6 Property, Plant and Equipment Land Building Store and warehouse equipment Computer equipment Vehicles Leasehold improvements Total $ $ $ $ Cost Balance January 31, 2016 316,349 24.596 4,349 249.887 595.181 Additions 22.144 45.779 34.012 13.346 1,168 37.130 153.574 Dispositions (36) (4.050) (047) (32) (5.355) Balance January 29, 2017 22,144 45.779 350,325 33.892 4.565 286,695 743.400 Accumulated depreciation Balance January 31, 2016 168.517 7.648 1.316 85.475 262,956 Depreciation 94,111 5.995 927 17,175 48,208 Dispositions (8) (4,050) (574) (221) (4.853) Balance January 29, 2017 192,620 9.593 1,669 102429 306.311 Net book value Balance January 29, 2017 29.144 45.779 157.705 24.299 2,896 184,266 437.089 Cost Balance February 1, 2015 286,011 18,968 3.706 211,267 519.959 Additions 31.367 9.794 1.934 40,136 83.231 Dispositions (1.029) (4.166) (1,291) (1.516) (8,002) Balance January 31, 2016 316,349 24.596 4.349 249,887 595.181 Accumulated depreciation Balance February 1, 2015 147,677 8,018 72.317 229.320 Depreciation 21,576 810 14,146 40.328 Dispositions (736) (4.166) (802) (988) (6,692) Balance January 31, 2016 168,517 7.648 1,316 85.475 262,956 Net book value Balance January 31, 2016 147.832 16,948 3.033 164,412 332,225 Thaballdinrarfishstantially complete. 11 1.308 III 3.796 11 3 Summary of Significant Accounting Policies Property, plant and equipment Property, plant and equipment are carried at cost and depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Store and warehouse equipment 10 to 15 years Vehicles 5 years Building and roof 20 50 years Leasehold improvements Lease term Computer equipment 5 years 22,144 13,346 6 Property, Plant and Equipment Land') Building) 2) Store and warehouse equipment Computer equipment Vehicles Leasehold improvements Total $ $ $ Cost Balance January 31, 2016 316,349 24,596 4,349 249,887 595,181 Additions 45,779 34,012 1,163 37,130 153,574 Dispositions (36) (4,050) (947) (322) (5,355) Balance January 29, 2017 22,144 45,779 350,325 33,892 4,565 286,695 743,400 Accumulated depreciation Balance January 31, 2016 168,517 7,648 1,316 85,475 262,956 Depreciation 24,111 5,995 927 17,175 48,208 Dispositions (8) (4,050) (574) (221) (4.853) Balance January 29, 2017 192,620 9,593 1,669 102,429 306,311 Net book value Balance January 29, 2017 22,144 45,779 157,705 24,299 2,896 184,266 437,089 Cost Balance February 1, 2015 286,011 18,968 3,706 211,267 519,952 Additions 31,367 9,794 40,136 83.231 Dispositions (1,029) (4,166) (1,291) (1,516) (8,002) Balance January 31, 2016 316,349 24,596 4,349 249,887 595,181 Accumulated depreciation Balance February 1, 2015 147,677 8,018 1,308 72,3 320 Depreciation 21,576 3,796 810 40,328 Dispositions (736) (4,166) (802) (988) (6,692) Balance January 31, 2016 168,517 7,648 1,316 85,475 262,956 Net book value Balance January 31, 2016 147,832 16,948 3,033 164,412 332,225 1,934 14,146 6 Property. Plant and Equipment Land Building Store and warehouse equipment Computer equipment Vehicles Leasehold improvements Total 8 8 $ Cont Balance January 31, 2016 316,349 24.596 4.349 249.887 595.18: Additions 33,144 45.779 34.013 13.346 1,163 37.130 153.574 Disposition (36) (4.050) (947) (322) (5355) Balance January 29, 2017 22,144 45.779 350.325 33.892 4.565 286,695 743.400 Accumulated depreciation Balance January 31, 2016 168.517 7.648 1.316 89,475 269,956 Depreciation 24,111 5.995 927 17,175 48,208 Dispositions (8) (4.050) (574) (221) (4.853) Balance January 29, 2017 192,620 9.593 1,669 102,429 306,311 Net book value Balance January 29, 2017 29.144 45.779 157.705 24,299 2.896 184,266 437,089 Cost Balance February 1, 2015 286,011 18.968 3.706 211,267 519.95 Additions 31,367 9.794 1.934 40,136 83,231 Dispositions (1.029) (4.166) (1,291) (1.516) (8,002) Balance January 31, 2016 316,349 24.596 4.349 249,887 595.181 Accumulated depreciation Balance February 1, 2015 147,677 1.308 72.317 229.320 Depreciation 21.576 3.796 810 14,146 40.328 Dispositions (736) (4.166) (802) (988) (6,692) Balance January 31, 2016 168,517 7.648 85.475 262,956 Net book value Balance January 31, 2016 147.832 16,948 3.033 164,412 332,225 Total costs of $67.923 for the land, building and roof also include racking, fixtures and other equipment that are in the process of being installed. The building itself is now substantially complete. Recognised costs of $33.295 for the building and roof will start being depreciated as at January 30, 2017, which is when management deemed the building to be substantially available for use Racking fixtures and other equipment (including hardware and software) totalling $12,484 will be reclassified to store and warehouse equipment, computer equipment and computer software at ater date, onde depreciation begins 11 8.018 III 1.316 6 Property, Plant and Equipment Land Building Store and warehouse equipment Computer equipment Vehicles Leasehold improvements Total $ $ $ $ Cost Balance January 31, 2016 316,349 24.596 4,349 249.887 595.181 Additions 22.144 45.779 34.012 13.346 1,168 37.130 153.574 Dispositions (36) (4.050) (047) (32) (5.355) Balance January 29, 2017 22,144 45.779 350,325 33.892 4.565 286,695 743.400 Accumulated depreciation Balance January 31, 2016 168.517 7.648 1.316 85.475 262,956 Depreciation 94,111 5.995 927 17,175 48,208 Dispositions (8) (4,050) (574) (221) (4.853) Balance January 29, 2017 192,620 9.593 1,669 102429 306.311 Net book value Balance January 29, 2017 29.144 45.779 157.705 24.299 2,896 184,266 437.089 Cost Balance February 1, 2015 286,011 18,968 3.706 211,267 519.959 Additions 31.367 9.794 1.934 40,136 83.231 Dispositions (1.029) (4.166) (1,291) (1.516) (8,002) Balance January 31, 2016 316,349 24.596 4.349 249,887 595.181 Accumulated depreciation Balance February 1, 2015 147,677 8,018 72.317 229.320 Depreciation 21,576 810 14,146 40.328 Dispositions (736) (4.166) (802) (988) (6,692) Balance January 31, 2016 168,517 7.648 1,316 85.475 262,956 Net book value Balance January 31, 2016 147.832 16,948 3.033 164,412 332,225 Thaballdinrarfishstantially complete. 11 1.308 III 3.796 11