-Refer to Fireworks City. Using the data for 2013, determine the average life of the company's property, plant, and equipment rounded to one decimal place.
A)1.6 years
B)2.5 years
C)4.0 years
D)10.0 years

Question

-Refer to Fireworks City. Using the data for 2013, determine the average life of the company's property, plant, and equipment rounded to one decimal place.
A)1.6 years 
B)2.5 years 
C)4.0 years 
D)10.0 years

Quizplus · Accepted Answer

The average life of property, plant, and equipment is calculated by dividing the total cost of the assets by the annual depreciation expense. The data for 2013 suggests that the average life is approximately 4.0 years.