Waters Filtration Equipment has obtained the following data from its accounting records:
The average useful life of PPE assets is:
A) 2.5 years.
B) 2.72 years.
C) 6.8 years.
D) Cannot be determined from the data provided.

Question

Waters Filtration Equipment has obtained the following data from its accounting records:
 The average useful life of PPE assets is:
A) 2.5 years. 
B) 2.72 years. 
C) 6.8 years. 
D) Cannot be determined from the data provided.

Quizplus · Accepted Answer

The average useful life of PPE assets can be calculated as: Average cost of PPE assets/annual depreciation expense. $850,000/125,000 = 6.8 years.

Waters Filtration Equipment Has Obtained the Following Data from Its