Use the Following Assets Section of Hu Corporation's Balance Sheets

question 220

Essay

Use the following Assets section of Hu Corporation's balance sheets for the years ended December 31, 2015 and
2014 to answer the questions that follow.
HU CORPORATION
Assets Section of Consolidated Balance Sheets in millions
at December 31,2015 2014
ASSETS Current Assets
$1,889 and $97
Hu Corporation recorded depreciation expense of $344 million for 2014.
-Refer to the information for Hu Corporation.
Required:
1 Determine the book value of Hu's property, plant and equipment at December 31, 2015 and 2014.
2 What types of transactions could have caused the change in book value of property, plant, and equipment during 2015?

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Definitions:

Price Elasticity

The degree to which demand for an item adjusts following a price alteration for the same item, quantified as a percentage change.

Watches

Timekeeping devices worn on the wrist, designed to show the time, and possibly include other features such as date display, stopwatch, and alarms.

Per Capita Income

The average income earned per person in a given area in a specified year, often used to measure economic well-being.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at a given price in a given time period.