单选题

Question
The following information has been gathered regarding a firm that uses straight line depreciation.
Gross plant and equipment $1250000
Depreciation expense $ 235000
Accumulated depreciation $ 725000

单选题 The average depreciable life of plant and equipment is:

A、

A. 3.09 years.
B、

B. 5.32 years.
C、

C. 2.23 years.

【正确答案】 B

【答案解析】The average depreciable life = Gross PPE/Depreciation expense 5.32 = $1250000/$ 235000

单选题 Average remaining useful life of the plant and equipment is:

A、

A. 3.09 years.
B、

B. 4. 32 years.
C、

C. 2.23 years.

【正确答案】 C

【答案解析】Remaining useful life = (gross investment-accumulated depreciation)/depreciation expense 2.23 = ( $1250000 - $ 725000) / $ 235000

单选题 The average age of plant and equipment is:

A、

A. 1.40 years.
B、

B. 3.09 years.
C、

C. 2.23 years.

【正确答案】 B

【答案解析】The average age = accumulated depreciation/depreciation expense 3.09 = $ 725000/$ 235000.