Below Is Selected Information Taken from the Balance Sheet of Huy

Below is selected information taken from the balance sheet of Huy Corporation as of 12/31/06. $\begin{array}{lrr}&\underline{12 / 31 / 05}&\underline{12 / 31 / 06}\\\text { Land } & \$ 100,000 & \$ 100,000 \\\text { Machines } & \underline{80,000} & \underline{70,000} \\\text { Gross property, plant, \& equipment } & 180,000 & 170,000 \\\text { Accumulated depreciation } & \underline{25,000} & \underline{10,000} \\\text { Net property, plant, \& equipment } & \underline{\$ 155,000} & \underline{\$ 160,000} \\\text { Depreciation expense } & & \$ 5,000\end{array}$

-The average age of Huy's depreciable assets as of 2006 is:

A) 2 years.
B) 7 years.
C) 14 years.
D) 34 years.

Correct Answer:

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