The information that follows is from the balance sheet of Hampton Company for December 31, 2013, and

Question:

The information that follows is from the of Hampton Company for December 31, 2013, and December 31, 2012.
_________________________________________Dec. 31, 2013 ______Dec. 31, 2012
Equipment-cost. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 680,000 ............... $ 680,000
Accumulated depreciation-equipment . . . . . . . . . (250,000) ................ (160,000)
Buildings-cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,450,000 ............... 2,450,000
Accumulated depreciation-buildings . . . . . . . . . . (340,000) ................ (230,000)
Hampton did not acquire or dispose of any buildings or equipment during 2013. Hampton uses the straight-line method of depreciation. If residual values are assumed to be 10% of asset cost, what is the average useful life of Hampton's
(1) Equipment and
(2) Buildings?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...