![alisaharnauth](/avatars/44682.jpg)
alisaharnauth
15.11.2019 •
Business
Aplant asset was purchased on january 1 for $80,000 with an estimated salvage value of $20,000 at the end of its useful life. the current year's depreciation expense is $10,000 calculated on the straight-line basis and the balance of the accumulated depreciation account at the end of the year is $20,000. the remaining useful life of the plant asset is years.
a. 7
b. 5
c. 4
d. 15
how is it calculated?
Solved
Show answers
More tips
- F Family and Home Is It Worth Spoiling a Child?...
- S Society and Politics Will Japan become Russia s Military Enemy?...
- P Philosophy Is Everything We Strive for Eventually Achieved and Destroyed?...
- S Society and Politics Understanding Politics and Its Role in the Development of Civilization...
- P Philosophy Why Did God Create Man and Place Him in Obscurity?...
- S Society and Politics Skoptsy: Who They Are and How They Perform Castration?...
- O Other Childhood Fears: What Many of Us Experienced...
- P Philosophy What is Something for you?...
- H Health and Medicine Why Do Humans Have One Heart?...
- P Philosophy Unbelievable stories of encounters with otherworldly forces...
Answers on questions: Business
- B Business this process of continuous alteration was applied not only to newspapers, but to books, periodicals, pamphlets, posters, leaflets, films, soundtracks, cartoons, photographs—to every...
- B Business The is a market derived interest rate used to discount the future cash flows of the bond. ashworth college...
- B Business The managers most important food safety responsibility is training you to...
- B Business The of a square matrix is a particular number associated with it. in case of a 2x2 matrix it is equal to ad-bc, where a, b, c, and d are the four elements of the matrix....
- B Business The emergency food assistance program distributes for home and institutional use. funds to buy food meals grocery store vouchers commodity foods, such as peanut butter and pasta...
- B Business What are the three kinds of maintenance a manager has to carry out for a managed property?...
- B Business 14 the oligopoly model that predicts that oligopoly price tend to be very rigid is the...
- H History Why do states have the same number of representatives in the Senate but different numbers in the House of Representatives? This was copied from the method of representation in the...
- M Mathematics Find all roots of the equation x^3+x^2+4x+4=0...
- E English Need help plz and thank u...
Ответ:
The remaining useful life of the plant asset is 4 years.
Explanation:
How to compute an assets useful life:
Determining the plant's depreciation base.
The plant's depreciation base = Acquisition cost - Salvage value
The plant's depreciation base = 80,000 - 20,000.
The plant's depreciation base/ depreciable amount = 60,000.
Determining the plant's annual depreciation expense.
The plant's annual depreciation expense = The plant's depreciation base/ Useful life.
The plant's annual depreciation expense = 10,000.
The plant's depreciation base = 60,000.
Useful life can be expressed as an unknown X.
Therefore 10,000 = 60,000/X
10,000X = 60,000
X = 60,000/10,000
X = 6 years of useful life.
Determining the when accumulated depreciation should be $ 20,000.
Since we have the number of useful years and the annual depreciation expense,we can now work out the accumulated depreciation for each useful year.
Accumulated depreciation for each year will be computed as:
Annual depreciation × number of useful life.
Year 1 = 10,000 × 1 = 10,000.
Year 2 = 10,000 × 2= 20,000
Year 3 = 10,000 × 3 =30,000.
Year 4 = 10,000 × 4=40,000.
Year 5 = 10,000 × 5= 50,000.
Year 6 = 10,000 × 6= 60,000
From the above schedule we can see that the current year is year 2.
Therefore the remaining useful years can be computed as:
Remaining useful life = Total useful life - Current useful life
Remaining useful life = 6 - 2 .
Remaining useful life = 4
Ответ: