Answered

Westonci.ca is your go-to source for answers, with a community ready to provide accurate and timely information. Join our platform to connect with experts ready to provide detailed answers to your questions in various areas. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

A plant asset was purchased on January 1 for $140000 with an estimated salvage value of $20000 at the end of its useful life. The current year's Depreciation Expense is $10000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $40000. The remaining useful life of the plant asset is

Sagot :

facundobuzzetti

Answer:

useful life= 12 years

Explanation:

Giving the following information:

Purchase price= $140,000

Salvage value= $20,000

Annual depreciation= $10,000

To calculate the useful life, we need to use the straight-line method formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

10,000= (140,00 - 20,000) / useful life

10,000useful life = 120,000

useful life= 120,000 / 10,000

useful life= 12 years

Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.