Question: A note to a recent annual report for Black & Decker contained the following information (dollars in thousands): Current Year Land and improvements ...........$ 69,091

A note to a recent annual report for Black & Decker contained the following information (dollars in thousands):

Current Year

Land and improvements ...........$ 69,091

Buildings ................. 298,450

Machinery and equipment ......... 928,151

1,295,692

Less accumulated depreciation ....... 468,511

$ 827,181

Depreciation expense (in thousands of dollars) charged to operations was $99,234 in the current year. Depreciation generally is computed using the straight-line method for financial reporting purposes.

Required:

1. What is your best estimate of the average expected life for Black & Decker’s depreciable assets?

2. What is your best estimate of the average age of Black & Decker’s depreciable assets?

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