Question

The 2016 financial statements for Leggett & Platt, Inc., report the following information: Year ended December 31, 2016 2015 (In millions) Depreciation expense $ 86.8 $ 83.5 Property and equipment, net 565.5 540.8 Land 37.7 40.0 Accumulated depreciation 1,165.4 1,146.5 Which of the following estimates the property and equipment's percent-used-up at December 31, 2016?

Answer 1

Answer:

68.82%

Explanation:

The computation is shown below:

= (Accumulated depreciation) ÷ (Property and equipment, net + accumulated depreciation - land)

= ($1,165.40) ÷ ($565.5 + $1,165.40 - $37.7)

= ($1,165.40) ÷ ($1,693.20)

= 68.82%

We simply find out the percentage between the accumulated depreciation and the property + accumulated depreciation - land

We deduct the land as land is not depreciated