"Showing both acquisition cost and accumulated depreciation amounts separately provides a rough indication of the relative age of the firm's long-lived assets."

a. Assume that the Abril Company acquired an asset with a depreciable cost of \(\$ 100,000\) several years ago. Accumulated depreciation as of December 31, recorded on a straightline basis, is \(\$ 60,000\). The depreciation charge for the year is \(\$ 10,000\). What is the asset's depreciable life? How old is the asset?

b Assume straight-line depreciation. Devise a formula that. given the depreciation charge for the year and the asset's accumulated depreciation, can be used to determine the age of the asset.