In Year 4,Landmark Restaurants reported the cost of property and equipment at $1,189.8 million and the accumulated depreciation at $224.2 million.In that same year,Coca Cola reported $10,149 million in long-lived,productive assets and accumulated depreciation on them of $4,058.
A.Estimate the approximate percent of remaining life of the assets for Landmark and Coca Cola.
B.Which company appears to have newer assets with longer remaining lives?

Question

gizeal bahati · Accepted Answer

Final Answer :

A.Landmark: 81.2% = ($1,189.8 - $224.2)/$1,189.8.Coca Cola: 60.0% = ($10,149 - $4,058)/$10,149.
B.Landmark appears to have "newer" assets than Coca-Cola because 81.2% of its assets' value remains in book value while Coca-Cola has 60.0% remaining in book value.

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