Check your answer
Write your response and explain your reasoning.
Search Microsoft's 2025 annual report for Microsoft Corporation and its subsidiaries. Work inside the financial statements and accompanying notes. Record both locations before reviewing the supplied answer.
Find depreciation expense for fiscal 2024 in the 2025 annual report. Then find the accounting policy that explains how Microsoft depreciates property and equipment. Give a location for each finding and explain how the policy relates to the expense. Distinguish the expense from accumulated depreciation.
Compare your reasoning with the worked answer
Note 6, Property and Equipment, reports depreciation expense of $15.2 billion for fiscal 2024. The paragraph follows the property and equipment table. Accumulated depreciation in that table is a balance at June 30; it is not the expense for the year.
Note 1, Accounting Policies, under Property and Equipment, describes straight-line depreciation over the shorter of estimated useful life or lease term. The method explains how the company spreads depreciable cost over time. The amount for one year must still be found in Note 6.