Question
D Question 42 1 pts Company A has equipment that cost $5,250,000 and that has accumulated depreciation of $500,000; Company B has equipment that cost
D Question 42 1 pts Company A has equipment that cost $5,250,000 and that has accumulated depreciation of $500,000; Company B has equipment that cost $4,600,000 and that has accumulated depreciation of $4,400,000. Both companies use straight-line depreciation. For both companies, the equipment has an estimated useful life of 40 years with a $100,000 residual value. What can be inferred from the information? O Company A's equipment is newer than Company B's. O Company B's equipment has a higher book value than Company A's. Company A's equipment is older than Company B's. Both companies have held their equipment for a similar amount of time. Which of the following is NOT a reason to revise the amount of depreciation expense? incurrence of a capital expenditure associated with a plant asset O permanent decline of an asset's fair market value below book value O change in estimated residual value O change in estimated useful life
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