Using the information below calculate the average total depreciable life of the assets: $\text { Information from the Balance Sheet: }$

$\begin{array}{llll}
&2012&2011\
\text { Depreciable Assets } & \$ 2,458,600 & \$ 1,985,400\
\text { Accumulated Depreciation } &\underline{(1,350,700)}&\underline{(1,046,000)}\
\text { Depreciable Assets(Net) } & \$1,107,900& \$939,400
\end{array}$ $\begin{array}{llcc}
\text {From the Income Statement } &2012 \
\text { Depreciation Expense } &\$384,500\
\end{array}$

Question

Using the information below calculate the average total depreciable life of the assets: $\text { Information from the Balance Sheet: }$

$\begin{array}{llll}
&2012&2011\
\text { Depreciable Assets } & \$ 2,458,600 & \$ 1,985,400\
\text { Accumulated Depreciation } &\underline{(1,350,700)}&\underline{(1,046,000)}\
 \text { Depreciable Assets(Net) } & \$1,107,900& \$939,400
\end{array}$   $\begin{array}{llcc}
  \text {From the Income Statement  } &2012  \
 \text { Depreciation Expense } &\$384,500\
\end{array}$

Quizplus · Accepted Answer

The average total depreciable life of the assets is calculated by dividing the total depreciable assets by the depreciation expense. For 2012, this is $ \$2,458,600 / \$384,500 \approx 6.39 $ years. However, considering the accumulated depreciation and net depreciable assets, the average life is approximately 5.8 years.

Using the Information Below Calculate the Average Total Depreciable Life Information from the Balance Sheet: \text { Information from the Balance Sheet: } Information from the Balance Sheet:

Using the Information Below Calculate the Average Total Depreciable Life $\text { Information from the Balance Sheet: }$