1.Determine the average age as a percent of depreciable life and the average age of the plant and equipment given the following information:

§       Depreciation expense is $15,000.

§       Plant and equipment is $250,000.

§       Accumulated depreciation is $60,000.

A)                                        25%      4

B)                                        24%      4

C)                                        24%      6

D)                                        25%      6

2.A firm using straight-line depreciation reports the following financial information:

§       Gross investment in fixed assets of $89,167,205.

§       Accumulated depreciation of $35,341,773.

§       Annual depreciation expense of $3,885,398.

The approximate age of the fixed assets is:

A)   9.10 years.

B)   2.52 years.

C)   13.85 years.

D)   22.95 years.

3.Ending gross investment/depreciation expense is used to estimate the average:

A)   age.

B)   depreciable life.

C)   age as a percent of depreciable life.

D)   depreciation.

4.The following information has been gathered regarding a firm that uses straight line depreciation.

§       Gross plant and equipment $1,250,000

§       Depreciation expense $235,000

§       Accumulated depreciation $725,000

The average depreciable life of plant and equipment is:

A)   3.09 years.

B)   5.32 years.

C)   2.23 years.

D)   8.40 years.

5.Average remaining useful life of the plant and equipment is:

A)   3.09 years.

B)   4.32 years.

C)   5.32 years.

D)   2.23 years.

答案和详解如下：

1.Determine the average age as a percent of depreciable life and the average age of the plant and equipment given the following information:

§       Depreciation expense is $15,000.

§       Plant and equipment is $250,000.

§       Accumulated depreciation is $60,000.

Average Age (%)

Average Age (Years)

A)                                        25%      4

B)                                        24%      4

C)                                        24%      6

D)                                        25%      6

The correct answer was B)

Average age as a percent of depreciable life = (60,000/250,000) x 100 = 24%

Average age of plant and equipment = $60,000 / $15,000 = 4 years

2.A firm using straight-line depreciation reports the following financial information:

§       Gross investment in fixed assets of $89,167,205.

§       Accumulated depreciation of $35,341,773.

§       Annual depreciation expense of $3,885,398.

The approximate age of the fixed assets is:

A)   9.10 years.

B)   2.52 years.

C)   13.85 years.

D)   22.95 years.

The correct answer was A)

Average age of fixed assets = accumulated depreciation / annual depreciation = $35,341,773 / $3,885,398 = 9.10.

3.Ending gross investment/depreciation expense is used to estimate the average:

A)   age.

B)   depreciable life.

C)   age as a percent of depreciable life.

D)   depreciation.

The correct answer was B)

Average depreciable life is approximated by:

ending gross investment / depreciation expense

4.The following information has been gathered regarding a firm that uses straight line depreciation.

§       Gross plant and equipment $1,250,000

§       Depreciation expense $235,000

§       Accumulated depreciation $725,000

The average depreciable life of plant and equipment is:

A)   3.09 years.

B)   5.32 years.

C)   2.23 years.

D)   8.40 years.

The correct answer was B)

The average depreciable life = Gross PPE / Depreciation expense

5.32 = $1,250,000 / $235,000

5.Average remaining useful life of the plant and equipment is:

A)   3.09 years.

B)   4.32 years.

C)   5.32 years.

D)   2.23 years.

The correct answer was D)

Remaining useful life = (gross investment – accumulated depreciation) / depreciation expense

2.23 = ($1,250,000 – $725,000) / $235,000

答案和详解如下：

1.Determine the average age as a percent of depreciable life and the average age of the plant and equipment given the following information:

§       Depreciation expense is $15,000.

§       Plant and equipment is $250,000.

§       Accumulated depreciation is $60,000.

Average Age (%)

Average Age (Years)

A)                                        25%      4

B)                                        24%      4

C)                                        24%      6

D)                                        25%      6

The correct answer was B)

Average age as a percent of depreciable life = (60,000/250,000) x 100 = 24%

Average age of plant and equipment = $60,000 / $15,000 = 4 years

2.A firm using straight-line depreciation reports the following financial information:

§       Gross investment in fixed assets of $89,167,205.

§       Accumulated depreciation of $35,341,773.

§       Annual depreciation expense of $3,885,398.

The approximate age of the fixed assets is:

A)   9.10 years.

B)   2.52 years.

C)   13.85 years.

D)   22.95 years.

The correct answer was A)

Average age of fixed assets = accumulated depreciation / annual depreciation = $35,341,773 / $3,885,398 = 9.10.

3.Ending gross investment/depreciation expense is used to estimate the average:

A)   age.

B)   depreciable life.

C)   age as a percent of depreciable life.

D)   depreciation.

The correct answer was B)

Average depreciable life is approximated by:

ending gross investment / depreciation expense

4.The following information has been gathered regarding a firm that uses straight line depreciation.

§       Gross plant and equipment $1,250,000

§       Depreciation expense $235,000

§       Accumulated depreciation $725,000

The average depreciable life of plant and equipment is:

A)   3.09 years.

B)   5.32 years.

C)   2.23 years.

D)   8.40 years.

The correct answer was B)

The average depreciable life = Gross PPE / Depreciation expense

5.32 = $1,250,000 / $235,000

5.Average remaining useful life of the plant and equipment is:

A)   3.09 years.

B)   4.32 years.

C)   5.32 years.

D)   2.23 years.

The correct answer was D)

Remaining useful life = (gross investment – accumulated depreciation) / depreciation expense

2.23 = ($1,250,000 – $725,000) / $235,000