Assume that the following was shown on the balance sheet related to property, plant and equipment on January 1, 2014:
Total PPE: $29,347
Less: Accum. Depr. 17,588
Also assume that a footnote says the following: “property, plant, and equipment is depreciated using the straight-line method.” Annual depreciation expense is approximately $1,800.
1. Estimate the average useful life of depreciable assets (assume no residual values).
2. Estimate the average age of depreciable assets on January 1, 2014.