Question

Tesla 2016 10-K

Required:      Answer the following questions based on your examination of the Tesla, Inc. 2016 10-K Note that some questions pertain to fiscal year 2016 and others pertain to fiscal year 2015; please carefully read each question

( Tesla, Inc. 2016 10-K ) is available on the internet. Sorry that It cannot be uploaded because it is more than 100 pages.

http://ir.tesla.com/secfiling.cfm?filingid=1564590-17-3118&cik=1318605

7.       What is the December 31, 2016 balance (in thousands) of Property, Plant, and Equipment, net, for Tesla, Inc.? a. $6,980,442

b.       $3,134,080

c.       $5,982,957

d.       $3,403,334

8.       What is the December 31, 2016 balance (in thousands) of Property, Plant, and Equipment, gross, for Tesla, Inc.? a. $5,982,947

b.       $997,485

c.       $2,154,367

d.       $6,980,442

9.       What is the December 31, 2016 balance (in thousands) of Land and buildings for Tesla, Inc.? a. $1,079,452

b.       $194,465

c.       $2,154,367

d.       $6,980,442

10.   How much interest expense related to self-constructed assets (construction in progress) did Tesla capitalize for the year ended December 31, 2016?

a.       $41.5 million

b.       $46.7 million

c.       $198.8 million

d.       $118.9 million

11.   How much interest expense (rounded) would Tesla have reported in 2016 if they had not capitalized any interest related to self-constructed assets (construction in progress)?

a.       $245.5 million

b.       $198.8 million

c.       $240.3 million

d.       $118.9 million

12.   Which depreciation method does Tesla use for its Property, plant, and equipment? a. Straight-line method

b.       SYD method

c.       DDB method

d.       Activity Based method

13.   Tesla, Inc. uses an estimated useful life for building and building improvements of… a. 3 to 10 years

b.       20 to 30 years

c.       2 to 12 years

d.       the shorter of their economic or legal useful life

14.   When should PP&E 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

15.   To perform a Recoverability test for PP&E, 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

16.   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

17.   Is restoration of an impairment loss for PP&E allowed for an asset held for use? a. Yes

b.       No

18.   Is restoration of an impairment loss for PP&E allowed for an asset held for disposal? a. Yes

b.       No

19.   Did Tesla recognize a material impairment charge for long-lived assets in fiscal year 2016? a. Yes

b.       No

Answer 1

Hi,

I have written all question and their correct answer out of choices given

7.       What is the December 31, 2016 balance (in thousands) of Property, Plant, and Equipment, net, for Tesla, Inc.?

c.       $5,982,957

8.       What is the December 31, 2016 balance (in thousands) of Property, Plant, and Equipment, gross, for Tesla, Inc.?

d.       $6,980,442

9.       What is the December 31, 2016 balance (in thousands) of Land and buildings for Tesla, Inc.?

a. $1,079,452

10.   How much interest expense related to self-constructed assets (construction in progress) did Tesla capitalize for the year ended December 31, 2016?

b.       $46.7 million

11.   How much interest expense (rounded) would Tesla have reported in 2016 if they had not capitalized any interest related to self-constructed assets (construction in progress)?

a.       $245.5 million

12.   Which depreciation method does Tesla use for its Property, plant, and equipment?

a. Straight-line method

13.   Tesla, Inc. uses an estimated useful life for building and building improvements of…

b.       20 to 30 years

14.   When should PP&E be measured for impairment using the Recoverability test?

c.       Annually

15.   To perform a Recoverability test for PP&E, the asset’s carrying amount is compared to…

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

16.   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…

d. The fair value of the asset

17.   Is restoration of an impairment loss for PP&E allowed for an asset held for use?

a. Yes

18.   Is restoration of an impairment loss for PP&E allowed for an asset held for disposal?

b.       No

19.   Did Tesla recognize a material impairment charge for long-lived assets in fiscal year 2016?

b.       No