Question
I am looking at a balance sheet for a company for the past two years and I obtain the following information regarding the companys Plant,
I am looking at a balance sheet for a company for the past two years and I obtain the following information regarding the companys Plant, Property and Equipment (PPE). In the notes the company has explained that they straight-line depreciate all of their long-lived assets and they assume no salvage value for any of their depreciable assets:
From year-end 2014 Balance Sheet: PPE (net of accumulated depreciation totaling $ 1.65 million) $ 8.76 million
From year-end 2013 Balance Sheet: PPE (net of accumulated depreciation totaling $ 1.25 million) $ 9.16 million
Identify the true statement regarding this companys PPE:
Select one:
a. The company must have sold off PPE in 2014
b. The average total life of the PPE is approximately 20 years
c. The PPE has approximately 4 years of remaining life
d. Depreciation Expense for the PPE in 2014 is approximately $400,000
e. All of the statements shown are false.
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