Jennings Advertising Inc.reported the following in its December 31,2016,balance sheet:
Equipment $500,000
Less: Accumulated depreciation-equipment $135,000
In a disclosure note,Jennings indicates that it uses straight-line depreciation over 10 years and estimates salvage value at 10% of cost.What is the average age of the equipment owned by Jennings?
A)2.7 years.
B)3 years.
C)7 years.
D)7.3 years.

Question

Quizplus · Accepted Answer

The Answer of Jennings Advertising Inc.reported the following in its December 31,2016,balance sheet:
Equipment $500,000
Less: Accumulated depreciation-equipment $135,000
In a disclosure note,Jennings indicates that it uses straight-line depreciation over 10 years and estimates salvage value at 10% of cost.What is the average age of the equipment owned by Jennings?
A)2.7 years.
B)3 years.
C)7 years.
D)7.3 years.