What is useful life given: Sales................................................

ID: 2547998 • Letter: W

Question

What is useful life given:

Sales.................................................................$7,270,965

PPE, gross ............................................................ 2,665,314

Land .................................................................—

Construction in progress ................................................. 124,400

Accumulated depreciation ................................................ 1,317,429

PPE, net, at year-end 2014 ............................................... 1,203,382

Depreciation expense.................................................... 193,594

To calculate useful life

Particular. Amounts ($)

PPE GROSS $ 2,665,314

Less land -

Less construction in progress ( $ 124,400 )

Depreciable asset cost $ 2,540,914

Depreciation expense. $ 193,594

useful life = depreciable asset cost /depreciation expense

= $ 2,540,914 / $ 193,594

= 13.12 years

The useful life is 13.12 years

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