Asahi Kasei Corporation has sales nearly the equivalent of $9 billion U.S. dollars. The company included the following in its balance sheet
Property,plant & equipment, net of accumulated depreciation
Buildings ¥ 158,424
Machinery & Equipment 156,156
Land 63,150
Construction in progress 22,089
Other 15,374
Total property, plant, and equipment ¥ 415,193
Footnote 8 contains the following:
Accumulated depreciation comprises the following (yen in millions):
Buildings ¥ 216,865
Machinery & Equipment 875,757
Other 86,795
Total accumulated depreciation ¥ 1,179.417
Footnote 2 says: "Depreciation is provided under the declining-balance method for property, plant, and equipment, except for buildings which are depreciated using the straight-line method, at rates based on estimated useful lives of the assets, principally, ranging from five years up to sixty years for buildings and from four years up to twenty-two years for machinery and equipment."
1.Compute the original acquisition cost of each of the five categories of assets listed under property, plant, and equipment.
2. Explain why Asahi Kasei shows no accumulated depreciation for land or construction in progress
3. Suppose Asahi Kasei had used straight line instead of declining balance depreciation for all asset categories. How would this affect the preceding values shown for property, pland and equipment?