by 2004 what percentage of the upstream segment costs have been depreciated assume n 600772

Analyzing depreciation on PP&E

The following note is taken from the 2004 Annual Report of ExxonMobil Corporation:

In the upstream segment, depreciation is on a unit-of-production basis, so depreciable life will vary by field. In the downstream segment, investments in refinery and. . . manufacturing facilities are generally depreciated on a straight-line basis over a 25-year life and service station buildings and fixed improvements over a 20-year life. In the chemical segment, investments in process equipment are depreciated on a straight-line basis over a 20-year life. Accumulated depreciation and depletion totaled $133 783 million at the end of 2004 and $124 350 million at the end of 2003.

Required

Based on the above note, answer the following:

(a) By 2004, what percentage of the upstream segment costs have been depreciated? Assume no salvage value and assume that in 2005, no upstream acquisitions or divestitures take place. If the upstream PP&E are used to produce 10% of their capabilities, what would be the depreciation expense and net book value at the end of 2005?

(b) By 31 December 2003, assuming a 20% salvage (residual) value, on average, what is the age of the chemical PP&E?

(c) Assuming no divestiture or retirement of assets, what was the depreciation expense for all PP&E in 2004?