In each of the following situations, determine the age of each asset in either years or units, whichever is appropriate.
A. Equipment appears on the balance sheet at a cost of $ 28,500 with accumulated depreciation of $ 14,100. The salvage value was estimated at $ 5,000, the useful life was estimated at five years, and the straight- line method of depreciation is used.
B. The cost of the truck is $ 21,800 with $ 17,100 of accumulated depreciation. Salvage value was estimated at $ 2,800, and the truck would most likely be driven for 100,000 miles. The company uses the units- of- production method of depreciation.
C. Machinery was purchased for $ 64,500 and, at present, has accumulated depreciation of $ 23,220. The useful life was estimated at 10 years, with a salvage value of $ 9,500. The double- declining-balance method of depreciation is used.

  • CreatedMarch 25, 2015
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