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You are engaged in the audit of the financial statements of Avon Corporation for the year ended December 31 2016 The chief accountant of the
You are engaged in the audit of the financial statements of Avon Corporation for the year ended December 31 2016 The chief accountant of the client has prepared the accompanying analyses of the Property Plant and Equipment and related accumulated depreciation accounts . You have traced the beginning balances to your prior year's audit working papers without exception AVON CORPORATION Analysis of Property , Plant and Equipment and Related Accumulated Depreciation Accounts Year Ended December 31 2016 Final Assets Final Description 12131 2015 Additions Retirements 12312016 Land $430.500 11 200 $ 15000 $ 426 700 Buildings 140.000 23.000 163. 090 Machinery & Equipmen 365 000 194.000 12 0 475 700 $935.500 $ 223 200 8 98 300 $1 065 400 Final Accumulated Depreciation Final Description 12/31/2015 Additions Retirements 12312016 Buildings $ 70.000 $ 6450 $ 76 450 Machinery & Equipmen 73. 250 43 880 27 75 184 830 $ 243 250 $ 50 330 $ 32. 250 $ 261 330 Depreciation Expense for the year Avon Corporation depreciates all plant assets using the straight - line basis ( no estimated residual value exists ) Estimated service lives are 25 years for the building and 10 years for other items . The company's policy is to depreciate on a monthly basis in the years of acquisition and disposa
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