An annual report for Ford Motor Company contained the

following #1011
An annual report for Ford Motor Company contained the following note:Significant Accounting
PoliciesDepreciation of Property, Plant, and Equipment. Property and equipment are stated at
cost and depreciated primarily using the straight- line method over the estimated useful life of
the asset. Useful lives range from 3 years to 36 years. The estimated useful lives generally are
14.5 years for machinery and equipment and 30 years for buildings and land improvements.
Special tools placed in service beginning in 1999 are depreciated using the units of production
method over the expected vehicle model cycle life. Maintenance, repairs, and rearrangement
costs are expensed as incurred.Required:Why do you think the company changed its
depreciation method for special tools acquired in 1999 and subsequent years?View Solution:
An annual report for Ford Motor Company contained the following

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