Question

Please answer the following questions based on the Columbia Sportswear Company 2017 10-K.

(Link to the Columbia's 10K: http://files.shareholder.com/downloads/COLM/6230778634x0x977594/E27E55DB-E7E3-4C4A-BA09-B8BB85FB2893/2018_Combined_Shareholder_Letter_and_10-K.pdf)

1. Assets classified as Property, Plant and Equipment can be either acquired for use in operations, or acquired for resale.

a. True

b. False

2. What is the December 31, 2017 balance (in thousands) of Land and Improvements for Columbia Sportswear Company?

a. $21,065

b. $21,862

c. $21,049

d. $20,862

3. What is the December 31, 2017 balance (in thousands) of Furniture and Fixtures for Columbia Sportswear Company?

a. $79,103

b. $93,782

c. $83,613

d. $75,682

4. What is the December 31, 2017 balance (in thousands) of total Accumulated Depreciation for Property, Plant, and Equipment for Columbia Sportswear Company ?

a. $281,394

b. $279,650

c. $408,676

d. $455,811

5. Which depreciation method does Columbia Sportswear Company use?

a. Straight-line method

b. SYD method

c. DDB method

d. Activity Based method

6. Columbia Sportswear Company uses an estimated useful life for land improvements of:

a. 5 years

b. 7 years

c. 10 years

d. 15 years

7. Columbia Sportswear Company depreciates leasehold improvements over:

a. 5 years

b. 15 years

c. The greater of the estimated useful life of the improvement or the remaining term of the lease.

d. The lesser of the estimated useful life of the improvement or the remaining term of the lease.

8. When should long-lived assets be measured for impairment using the Recoverability test?

a. Quarterly

b. Semi-annually

c. Annually

d. When circumstances change indicating a carrying amount may not be recoverable

e. None of the above

9. To perform a Recoverability test for long-lived assets, the asset’s carrying amount is compared to

a. The sum of the expected future net cash flows (discounted) from the use of that asset and its disposition

b. The sum of the expected future net cash flows (undiscounted) from the use of that asset and its disposition

c. The asset’s original historical cost

d. The asset’s fair market value

10. If the Recoverability test indicates an impairment, the loss for an asset held for use is the amount by which the carrying amount of the asset exceeds

a. The book value of the asset

b. The historical cost of the asset

c. The sum of the expected future cash flows (undiscounted) from the use of the asset and its disposition

d. The fair value of the asset

Answer 1

Answer to first 4 sub parts as per policy

1. Assets classified as Property, Plant and Equipment can be either acquired for use in operations, or acquired for resale.

False: Property, plant and equipment are tangible items that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and are expected to be used during more than one period. Does not include assets acquired for resale

2. What is the December 31, 2017 balance (in thousands) of Land and Improvements for Columbia Sportswear Company?

Answer: Option a. $21,065

3. What is the December 31, 2017 balance (in thousands) of Furniture and Fixtures for Columbia Sportswear Company?

Answer: Option c. $83,613

4. What is the December 31, 2017 balance (in thousands) of total Accumulated Depreciation for Property, Plant, and Equipment for Columbia Sportswear Company ?

Answer: Option d. $455,811