Acc112

School: Rio Salado Community College - Course: ACC 112 - Subject: Accounting

Amazon.com, Inc. has been chosen as the company.By means of their website, Amazon helps connect various sellers with customers and facilitates transactions between them. Amazon is an emerging online business platform. The company also manufacture and sell electronic devices. Also, they offer advertising services to publishers, authors, sellers, and vendors, through sponsored ads, display ads, and video ads. In addition to cloud computing, advertising, and online retail sales, this company works in the e-commerce and technology sectors and offers a range of services, such as cloud computing, advertising, and online retail sales. In this paper, I'll discuss the company's plant assets, depreciation, and intangibles as they were detailed in the most recent. (Form 10-K) Even though the company does not produce its own goods being sold to customers, Amazon has also various plant assets in its books.The valuation of the company's property, plant, and equipment as of December 31, 2020 was $35.7 billion, according to Amazon.com's 2020 Form 10-K. These resources include property, structures, leasehold improvements, and machinery used by the business.You may find this in the balance sheet of the 10K, specifically in the non-current assets section with a line item "Property and equipment, net". As of the 31 December 2020, the net book value amounted to 113,114 million while as of 31 December 2021, this linme item amounted to 160,281 million. (from 10-k) Long-term assets are depreciated over their useful lives by depreciation. It is calculated by dividing the asset's cost by its anticipated lifetime. The straight-line technique is used by Amazon.com to depreciate its property, plant, and equipment over the course of their anticipated useful lives. The company's 2020 Form 10-K states that the useful lifetimes for structures and upgrades vary from 3 to 40 years and 3 to 7 years, respectively. (Miller-Nobles 2020) The accumulated depreciation is subtracted from the asset's original cost to determine the asset's book value. Amazon.com's property, plant, and equipment cost $35.7 billion when it was purchased, and

$9.5 billion was deducted for cumulative depreciation as of December 31, 2020, leaving a net book value of $26.2 billion. Bulding40 year of rermaing useful life, whichever is lower SeversFor servers acquired prior January 1, 2020: 3 years For servers acquired from January 1, 2020: 4 years Networking equipment5 year Heavy equipment10 year Other fulfiment equipment3 - 10 years Landn/a