The annual report of General Mills, maker of Wheaties, Cheerios, and Betty Crocker baking products, for the...

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Accounting

The annual report of General Mills, maker ofWheaties, Cheerios, and Betty Crocker baking
products, for the year ended May 29, 2011, contained thefollowing($ in millions):
                                                                          May29,2011                  May 30, 2010
Total land, building, andequipment                   $7,492.1                              $6,949.7
Less: Accumulateddepreciation                        $4,146.2                             $3,822.0
Net land. building, andequipment                  $3345.9                             $3,127.7
During fiscal 2011, depreciation expense was $472.6 million, andGeneral Mills acquired land,
buildings, and equipment worth $848.8 million. Assume that nogain or loss arose from the
disposition of land, buildings, and equipment and that GeneralMills received cash of $158.0
million from such disposals.
Compute (1) the original historical cost of assets sold orretired during fiscal 2011, (2) the amount
of accumulated depreciation associated with the assets sold orretired, and (3) the book value of
the assets sold or retired. Hint: The use of T-accountsmay help your analysis.

Answer & Explanation Solved by verified expert

3.6 Ratings (407 Votes)

Answer 1T Account of Land building and equipment is prepared asbelowBeginning balance Purchase and Ending balances are asgivenOriginal historical cost of assets sold or retired Beginningbalance Purchase Ending balance 694970 See Answer

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