The property and equipment footnote from Tesla follows. Assume that 25% of the amount classified as "Land and buildings" pertains to the cost of the Land. Property and Depreciation Our property, plant and equipment, net, consists of the following (in thousands): December 31 2018 2017 Machinery, equipment, vehicles and office furniture $6,328,966 $4,251,711 Tooling Leaseholder improvements Land and buildings Computer equipment, hardware and software Construction in progress Less accumulated depreciation Total *Weighted averages 1,397,514 1,255,952 960,971 789,751 4,047,006 2,517,247 487,421 395,067 807,297 2,541,588 14,029,175 11,751,316 (2,699,098) (1,723,794) $11,330,077 $10,027,522 Depreciation expense during the years ended December 31, 2018, 2017, and 2016 was $1.11 billion, $769.3 million, and $477.3 million, respectively. a. Compute the average useful life of Tesla's depreciable assets at year-end 2018. Round answer to one decimal place.
The property and equipment footnote from Tesla follows. Assume that 25% of the amount classified as "Land and buildings" pertains to the cost of the Land. Property and Depreciation Our property, plant and equipment, net, consists of the following (in thousands): December 31 2018 2017 Machinery, equipment, vehicles and office furniture $6,328,966 $4,251,711 Tooling Leaseholder improvements Land and buildings Computer equipment, hardware and software Construction in progress Less accumulated depreciation Total *Weighted averages 1,397,514 1,255,952 960,971 789,751 4,047,006 2,517,247 487,421 395,067 807,297 2,541,588 14,029,175 11,751,316 (2,699,098) (1,723,794) $11,330,077 $10,027,522 Depreciation expense during the years ended December 31, 2018, 2017, and 2016 was $1.11 billion, $769.3 million, and $477.3 million, respectively. a. Compute the average useful life of Tesla's depreciable assets at year-end 2018. Round answer to one decimal place.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....
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Step 1: Introduction to depreciable assets:
VIEWStep 2: Working note- Determining the value of depreciable assets for 2018 and 2017:
VIEWStep 3: Requirement a- Determining the average useful life of the depreciable asset:
VIEWStep 4: Requirement b- Determining the percent of depreciable assets used up by the end of 2018:
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