Ellen's Antiques reported the following in its December 31, 2013, balance sheet: Equipment................................................$4,000,000 Accumulated depreciation-equipment...............$3,150,000 In a

Question:

Ellen's Antiques reported the following in its December 31, 2013, balance sheet:
Equipment................................................$4,000,000
Accumulated depreciation-equipment...............$3,150,000
In a disclosure note, Ellen's indicates that it uses straight-line depreciation over eight years and estimates at 10% of cost.
Required:
Compute the average age of Ellen's equipment at 12/31/2013
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...