Jennings Advertising Inc. reported the following in its December 31, 2013, balance sheet: 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

Jennings Advertising Inc. reported the following in its December 31, 2013, balance sheet:  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.

Quizplus · Accepted Answer

The Answer of Jennings Advertising Inc. reported the following in its December 31, 2013, balance sheet:  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.