13. XYZ has the following information on fixed assets for 2001 (in millions): net property plant & equipment, $564; accumulated depreciation, $260; ending gross investment, $824; and depreciation expense, $95. XYZ's fixed assets have an average depreciable life of:

a. 31.6% b. 2.7 years c. 8.7 years d. 36.5%

14. Given the information from Question 13 above, XYZ's fixed assets have an average age of:

a. 36.5% b. 2.7 years c. 8.7 years d. 31.6%

15. Apila has the following information on income tax for 2001: income tax expense, $409; pretax income, $1,231; taxes payable, $257; net income, $876.

Apila has an effective tax rate of:

a. 71.2% b. 20.9% c. 46.7% d. 33.2%

16. Cooper Copper Co. uses straight-line depreciation for financial reporting and double declining balance for tax. Using straight line the company reports tax of $41,000; under double declining balance tax is $34,000. Cooper would record:

a. Deferred tax asset of $34,000 b. Taxes payable of $41,000 c. Deferred tax liability of $7,000 d. Deferred tax asset of $7,000

17. Ken Can Co. has the following tax information for this year: Pretax income $72,000 Taxes payable $12,000 Income tax expense $19,000 Income tax paid $11,000 The reported effective tax rate is:

a. 16.7% b. 57.9% c. 26.4% d. 15.3%