An analyst can estimate the average total life of depreciable assets by

• A. dividing average depreciable assets by depreciation expense for the year.

• B. dividing depreciation expense for the year by average depreciable assets.

• C. dividing average gross depreciable assets by accumulated depreciation.

• D. Subtracting depreciation expense from accumulated depreciation.

A company would need to record an impairment loss for its equipment when

• A. the original cost of the equipment exceeds its fair value and is deemed not recoverable.

• B. management determines that the equipment will no longer be used.

• C. the carrying amount of the equipment exceeds its fair value and is deemed not recoverable.

• D. the cash flows from the equipment are less than its fair value.

Which of the following is(are) a difficulty in determining current market values when determining the value of fixed assets?

• A. There is an absence of active markets for many fixed assets.

• B. It is difficult to identify comparable assets currently available in the marketplace to value assets in place

• C. It is difficult to make assumptions about the effects of technology and other improvements when using the prices of new assets currently available on the market in the valuation process.

• D. All of the above.