Bakiponi Corp What Is the Average Age of the Company's Fixed Assets

question 24

Multiple Choice

Bakiponi Corp. provides the following data from its recent financial statements: $$\begin{array} { | l | r | r | } \hline \text { Dollars in millions) } & { \mathbf { 2 0 1 8 } } & { \mathbf { 2 0 1 9 } } \\\hline \text { Beginning Gross Fixed Assets } & \$ 2,140,000 & \$ 2,260,000 \\\hline \text { Ending Gross Fixed Assets } & 2,260,000 & 2,380,000 \\\hline \text { Beginning Accumulated Depreciation } & 1,210,000 & 1,450,000 \\\hline \text { Current year Depreciation Expense } & 240,000 & 290,000 \\\hline \text { Current year Sales Revenue } & 3,750,000 & 4,620,000 \\\hline\end{array}$$
What is the average age of the company's fixed assets as of the end of 2019? (Round your answer to two decimal places, X.XX.)

• A) 3.21
• B) 5.00
• C) 6.00
• D) 8.21

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Definitions:

Write-Offs

The deduction of an amount due (as an uncollectable debt) from an entity's revenue, thereby decreasing its income.

Insurance

A financial product that provides protection against financial losses, ensuring compensation for specified loss, damage, illness, or death in return for payment of a premium.

Accounts Payable

Liabilities of a company or organization due to purchases of goods and services to be paid to creditors or suppliers.

Adjustments

Adjustments are changes or modifications made to improve or correct something, often used in contexts ranging from accounting to spinal manipulation.