The following are recent excerpts from the financial statements of Sirius Satellite Radio Inc., a company delivering national satellite audio entertainment services:
|
Balance Sheet-Property, Equipment, and Intangible Assets
|
(in millions)
|
|
Terrestrial repeater network
|
72.0
|
|
Broadcast studio equipment
|
28.9
|
|
Furniture and fixtures
|
41.3
|
|
Other
|
69.9
|
|
Construction in progress
|
4.7
|
|
Property and equipment, gross
|
$1,162.3
|
|
Accumulated depreciation
|
(281.0)
|
|
Property and equipment, net
|
$ 881.3
|
|
FCC license
|
83.7
|
|
Total property, equipment, and intangible assets
|
$ 965.0
|
|
Depreciation Expense-Income Statement
|
$ 95.4
|
|
Satellite system
|
$ 945.5
|
a. Estimate the average useful lives of depreciable property and equipment, assuming straight-line depreciation and no residual value. Round to the nearest year.
b. Estimate the percent of remaining life of depreciable property and equipment, assuming straight-line depreciation and no residual value. Round to one decimal place.
c. Sirius reports no amortization expense associated with the FCC (Federal Communication Commission) license. Why is this?