State the formula for the average age and average useful life of fixed assets and describe what they tell an analyst.
Answer to relevant QuestionsHow and where are fixed assets recorded in the financial statements? 1. Vertical analysis of fixed assets and depreciation: a. calculates fixed assets as a percentage of total assets. b. calculates depreciation expense as a percentage of revenues. c. calculates the change in fixed assets as a ...Prince's Pipe Co. purchases equipment with a list price of $22,000. Regarding the purchase, Prince: • Received a 2% discount off the list price • Paid shipping costs of $800 • Paid $1,750 to install the equipment, ...A company that uses the straight-line method of depreciation experiences the following independent items: • Increases a useful life estimate from 5 years to 8 years • Pays for maintenance of equipment • Reduces a ...Development Industries purchased a depreciable asset for $50,000 on January 1, 2012. The asset has a five-year useful life and a $10,000 estimated salvage value. The company will use the straight-line method of depreciation ...
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