Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 40

Using the Home Depot, Inc. , Financial Statements to Determine Depreciation Methods Used
The Home Depot financial statements and related material appear in Appendix A at t he end of this textbook. Use this to answer the following questions and indicate where in the financial statements you found the information.
a. What depreciation method does Home Depot use for buildings, furniture, fixtures, and equipment? What are the useful lives over which these assets are depreciated?
b. From the notes to Home Depot 's financial statements, what can you learn about the company's policy regarding impairment of plant assets?
c. Locate Home Depot 's balance sheet and find the section entitled "Property and Equipment, at cost." As of February 3, 2013, determine the amount of the company's investment in property and equipment and the amount of depreciation taken to date on those assets. Are these assets, as a whole, near the beginning or end of their estimated useful lives? Explain your answer.