The following information has been provided by Bolero Corporation and Canway Enterprises: in '000's $ Bolero Canway
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Question:
The following information has been provided by Bolero Corporation and Canway Enterprises:
in '000's $ | Bolero | Canway |
2020 | 2020 | |
Cash | 450 | 175 |
Inventory | 625 | 872 |
Land | 1,050 | 3,533 |
Building | 1,000 | 3,100 |
Accum Depreciation | 250 | 580 |
Machinery | 1,225 | 2,550 |
Accum Depreciation | 400 | 1,250 |
Additional Information:
Both Companies use straight-line depreciation, buildings are estimated to have no residual value and a 40 year useful life, while machinery is estimated to have no residual value and a 10 year useful life.
Instructions
Calculate the average age of PPE for 2020 using both the average age % and average age ratios. Assess the age of Bolero and Canway’s assets. Which company is likely to begin to replace its assets first?
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
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