When it states 9yeasr of remaining life for the horses, does it mean depreciation sould be accounted base on nine years for example, 10000 at cost for a horse in 9 years results in 1111.1111 per year and this is not a nice whole number unlike if only 8 years is accounted... Thanks

GAM 's bank is agreeable with Millie's idea to account for Saddle-Up's horses as a non-current asset. They all agree that the average remaining life of the horses is 9 years. Ginny has insisted that horses not be sold when they are no longer fit for riding. As a animal lover she insists that non-rideable horses be put out to pasture until they die a natural death. Saddle-Up's buildings are in average condition. GAM estimate an average remaining useful life of 13 years with an estimated residual value of 20% of the purchased value of $180,000. Monthly building maintenance labour costs are budgeted at $500. On the other hand, the purchased equipment is in relatively poor condition. All equipment will need to be completely replaced in 3 years and will be saleable for 10% of its purchased value