Question

Assume the following property and equipment footnote was obtained from the Deere & Company's 2016 10-K. Property and Depreciation A summary of property and equipment at October 31 follows: ($ millions) Average Useful Lives (Years) 2016 2015 Equipment Operations Land $79 $75 Buildings and building equipment 25 1,490 1,419 Machinery and equipment 10 2,961 2,870 Dies, patterns, tools, etc 7 1,039 987 All other 5 589 571 Construction in progress 232 156 Total at cost 6,390 6,078 Less accumulated depreciation 4,113 3,966 Total $2,277 $2,112 During 2016, the company reported $636.5 million of depreciation expense (this expense also includes amortization expense relating to computer software that is included with property and equipment). Estimate the percent used up of Deere's depreciable assets.

Answer 1

The percent used up of Deere's depreciable assets in 2016 was 64.47%.

Step-by-step explanation:

To estimate the percent used up of Deere & Company's depreciable assets, we need to calculate the accumulated depreciation as a percentage of the total cost of assets. In 2016, the total cost of assets was $6,390 million, and the accumulated depreciation was $4,113 million. So, the percent used up of depreciable assets can be calculated as:

Percent used up = (Accumulated depreciation / Total cost of assets) x 100

= (4,113 / 6,390) x 100

= 64.47%

Answer 2

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