Table:
| March 31, |  |  |
| --- | --- | --- |
| (in thousands) | 2019 | 2018 |
| Land | $672 | $672 |
| Machinery and equipment | 1,372 | 1,296 |
| Office, computer and research equipment | 5,267 | 5,175 |
| Leasehold improvements | 798 | 1,238 |
| Land, property and equipment, gross | $8,109 | $8,381 |
| Less accumulated depreciation and amortization | (6,811) | (6,780) |
| Land, property and equipment, net | $1,298 | $1,601 |
Paragraphs:
Land, Property and Equipment
Land, property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, or for leasehold improvements, the shorter of the remaining lease term or the estimated useful life. The estimated useful lives for machinery and equipment range from 5 to 7 years and for office, computer and research equipment from2 to 5 years. Expenditures for major renewals and improvements that extend the useful life of property and equipment are capitalized.
Depreciation and amortization expense was $0.6 million and $0.8 million for fiscal years2019 and 2018, respectively. In accordance with ASC Topic 360, Property, Plant and Equipment (ASC 360), the Company assesses all of its long-lived assets, including intangibles, for impairment when impairment indicators are identified. If the carrying value of an asset exceeds its undiscounted cash flows, an impairment loss may be necessary. An impairment loss is calculated as the difference between the carrying value and the fair value of the asset.
The Company acquired 16 acres of land with an acquisition and sold4 acres in April 2015 for$264,000. The Company still owns 12 acres of land that remains on the market. The Company concluded that a sale transaction for the remaining land is not probable within the next year; therefore, unsold land is classified as held-and-used as of March 31, 2019 and 2018.
The components of fixed assets are as follows:
Question:
How are land, property, and equipment stated in the report?
Answer: at cost, net of accumulated depreciation and amortization