asked 200k views
2 votes
What is the remaining useful life of Cullumber Company's factory machine with a book value of $90,500?

Options:
A) 4 years
B) 6 years
C) 8 years
D) 10 years

1 Answer

3 votes

Final answer:

Without additional information about the machine's original cost, estimated total useful life, or depreciation method, it is not possible to accurately determine the remaining useful life of Cullumber Company's factory machine.

Step-by-step explanation:

The question regarding the remaining useful life of Cullumber Company's factory machine with a book value of $90,500 does not provide enough information to calculate or estimate the actual remaining useful life. Without further details such as the original cost of the machine,

its estimated total useful life, the method of depreciation used (straight-line, double-declining balance, etc.), or the annual depreciation expense already applied to the asset, it is not possible to determine the correct answer from the options provided.

The example given in the reference information about computer parts (Solution 5.9) is not directly applicable to the question about the factory machine, as it simply illustrates that if one computer part lasts 10 years, five such parts used consecutively would last for a total of 50 years. This is an example of a basic mathematical calculation rather than an accounting or depreciation-related problem.

answered
User Natalia Davydova
by
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