K?mmel, Accounting, 6e Help Multiple Choice Question 111 urchased on January 1 f

Question

K?mmel, Accounting, 6e Help Multiple Choice Question 111 urchased on January 1 for htline basis and the balance of the Accumulated Depreciation accoun stimated salvage value of $20000 at the end of its useful life. The current balance of the Accumulated Depreciation account at the eciation expense is $4000 calculated on the straight-line basis and end of the year is $20000. The remaining useful life of the O 5 years. O 14 years. O 11 years. O 6 years Click if you would like to Show Work for this question: Qeen Show work LINK TO TEXT

Explanation / Answer

ANSWER -- 6 years

EXPLANATION --

[(Cost - Salvage Value) / Dep Expense] = Useful Life

($64000-$20000) / $4000 = 11

[Useful Life - (Accumulated Depriciation / Depriciation Expense)] = Remaining Useful Life

[11 - ($20000 / $4000)] = 6 years

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