Autry Company uses the straight-line depreciation method, and reports the information below for its plant assets...

 

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Autry Company uses the straight-line depreciation method, and reports the information below for its plant assets below: Cost: $850,000. Annual depreciation expense: $50,000. Accumulated depreciation expense: $200,000. Required: a. Compute the analytical measures of plant age for Autry Company b. What information is useful to determine an estimated point of plant asset replacement in a forecast of future cash flows? c. Will the analytical measures of plant age impact (be included) an analyst's forecast in this case? Autry Company uses the straight-line depreciation method, and reports the information below for its plant assets below: Cost: $850,000. Annual depreciation expense: $50,000. Accumulated depreciation expense: $200,000. Required: a. Compute the analytical measures of plant age for Autry Company b. What information is useful to determine an estimated point of plant asset replacement in a forecast of future cash flows? c. Will the analytical measures of plant age impact (be included) an analyst's forecast in this case?

Answer rating: 100% (QA)

a Plant age 4 years b The nature of PPE assets is that some of these assets need to be regularly fix... View the full answer