The following information has been provided by Bolero Corporation and Canway Enterprises: 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?

Question

The following information has been provided by Bolero Corporation and Canway Enterprises:  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?

Quizplus · Accepted Answer

The Answer of The following information has been provided by Bolero Corporation and Canway Enterprises:  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?

The Following Information Has Been Provided by Bolero Corporation and Canway