Fireworks City Information for 2012 and 2011 Is Presented Below

question 74

Multiple Choice

Fireworks City Information for 2012 and 2011 is presented below for this company which uses the straight-line depreciation method.
$\begin{array}{l}\begin{array}{lll}\\\text { Property, plant and equipment }\\\text { Accumulated depreciation }\\\text {Depreciation expense }\\\text {Net sales }\\\text { Total assets }\\\end{array}\begin{array}{lll} \underline{ 2012 }& \underline{ 2011 } \\ { \$750,000 } & { \$ 190,000 } \\100,000 & 85,000 \\ 62,500 & 47,500 \\ 1,000,000 & 900,000 \\ 625,000 & 475,000\end{array}\end{array}$
-Refer to Fireworks City.Using the data for 2012,determine the average age of the company's property,plant,and equipment.

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Definitions:

Freight Costs

Expenses associated with transporting goods from one place to another, which can be paid by the shipper or the receiver.

Net 45

A payment term indicating that the full payment is due 45 days from the invoice date.

Credit Terms

The conditions under which a seller extends credit to a buyer, detailing the repayment time frame, interest rate, and penalties for late payment.

Cost of Goods Sold

The direct expenses related to the manufacture of the goods a company sells, encompassing both costs of materials and labor.