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Fireworks City
Information for Year 2 and Year 1 Is

Question 100

Multiple Choice

Fireworks City
Information for Year 2 and Year 1 is presented below for Fireworks City, which uses the straight-line depreciation method.  Year 2 Year 1  Property, plant, and equipment $250,000$190,000 Accumulated depreciation 100,00085,000 Depreciation expense 62,50047,500 Net sales 1,000,000900,000 Total assets 625,000475,000\begin{array} { l r r } & \underline{ \text { Year 2} } & \underline{\text { Year 1 }} \\\text { Property, plant, and equipment }& \$ 250,000 & \$ 190,000\\\text { Accumulated depreciation } & 100,000 & 85,000 \\\text { Depreciation expense }& 62,500 & 47,500\\\text { Net sales } & 1,000,000 & 900,000\\\text { Total assets } &625,000&475,000\\\end{array}
-Refer to the figure Fireworks City.According to the data for Year 2,what is the average life of the company's property,plant,and equipment,rounded to one decimal place?


A) 1.6 years
B) 2.5 years
C) 4.0 years
D) 10.0 years

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