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Basic Question 4 of 5

ABC Co. has the following accounts:

Current assets: $10,000
Property, plant & equipment: $120,000
Accumulated depreciation: 30,000
Total assets: $100,000
Gross profit: $50,000
Depreciation expense: 10,000
Tax expense: 5,000
Net Income: $35,000

The average age of fixed asset is estimated to be:

A. 1 year.
B. 3 years.
C. 9 years.

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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

analyze and interpret financial statement disclosures regarding property, plant, and equipment and intangible assets

CFA® 2025 Level I Curriculum, Volume 2, Module 7.