Estimate percent of remaining life of depreciable property

Assignment Help Financial Accounting

Reference no: EM13900311

The following are recent excerpts from the financial statements of Sirius Satellite Radio Inc., a company delivering national satellite audio entertainment services:

Balance Sheet-Property, Equipment, and Intangible Assets	(in millions)
Terrestrial repeater network	72.0
Broadcast studio equipment	28.9
Furniture and fixtures	41.3
Other	69.9
Construction in progress	4.7
Property and equipment, gross	$1,162.3
Accumulated depreciation	(281.0)
Property and equipment, net	$ 881.3
FCC license	83.7
Total property, equipment, and intangible assets	$ 965.0
Depreciation Expense-Income Statement	$ 95.4
Satellite system	$ 945.5

a. Estimate the average useful lives of depreciable property and equipment, assuming straight-line depreciation and no residual value. Round to the nearest year.

b. Estimate the percent of remaining life of depreciable property and equipment, assuming straight-line depreciation and no residual value. Round to one decimal place.

c. Sirius reports no amortization expense associated with the FCC (Federal Communication Commission) license. Why is this?

Reference no: EM13900311

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