The following property and equipment section was obtained from a recent Abbott L

Question

The following property and equipment section was obtained from a recent Abbott Laboratories 10-K.

  

The company also provides the following disclosure relating to the useful lives of its depreciable assets.

Property and Equipment Depreciation and amortization are provided on a straight-line basis
over the estimated useful lives of the assets. The following table shows estimated useful lives of
property and equipment.

During the year, the company reported $868,808 ($ 000s) for depreciation expense.

Compute the estimated useful life of Abbott Laboratories' depreciable assets.

Property and equipment, at cost ($ thousands) Land $370,949 Buildings 2,655,356 Equipment 8,813,517 Construction in progress 920,599 12,760,421 Less: accumulated depreciation and amortization 6,757,280 Net property and equipment $6,003,141

Explanation / Answer

Avg depreciable life Gross value of depreciable assets/Depreciation expense Building + equipment gross value/Dep exp (2655356+8813517)/868808 13.2 ans 13.2 years

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.