The average total life span of Huy's depreciable assets as of 2006 isa) 14 years.b) 2 years.c) 34 years.d) 7 years. Below is selected information taken from the balance sheet of Huy Corporation as of 12/31/06.LandMachinesGross property, plant, & equipmentAccumulated depreciationNet property, plant, & equipmentDepreciation expense12/31/05$100,00080,000180,00025,000$155,00012/31/06$100,00070,000170,00010,000$160,000$ 5,000

Answered: Below is selected information taken…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The average total life span of Huy's depreciable assets as of 2006 is

a) 14 years.

b) 2 years.

c) 34 years.

d) 7 years.

Below is selected information taken from the balance sheet of Huy Corporation as of 12/31/06.
Land
Machines
Gross property, plant, & equipment
Accumulated depreciation
Net property, plant, & equipment
Depreciation expense
12/31/05
$100,000
80,000
180,000
25,000
$155,000
12/31/06
$100,000
70,000
170,000
10,000
$160,000
$ 5,000

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Depreciation is a term use to allocate capital investment of Fixed assets over the useful life of that asset. there are various methods of depreciation such as straight line method, written down method, production volume method etc.

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