I’m working on a accounting discussion question and need an explanation to help me study.

PROPERTY PLANT & EQUIPMENT

Compare the average useful life and average age of the depreciable assets of Coca-Cola to those of PepsiCo. You will have to refer to the notes to the financial statements to find this information. You may have to consult more than one note.

Remember that land and construction in progress are NOT depreciated and therefore do not enter into these calculations.

Average useful life = (Average PP&E) divided by (depreciation expense)

Average age = (Average Accumulated Depreciation) divided by (depreciation expense)

Briefly comment on your results. Do the average useful lives seem reasonable? Which company will have to replace assets sooner?

Is there any other difference that catches your attention?

Estimated Time for Completion: 20-30 minutes

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