how to remember the formula of Average Age Of An Asset = Accumulated dep/ Dep expense
is there any logic behind it?
plz help
Yes.
Think straight-line depreciation: if you depreciate $8,000 per year for 7 years, then your accumulated depreciation is:
7\ years × \$8,000\ per\ year\ = \$56,000
So,
\frac{\$56,000}{\$8,000} = 7\ years
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thank you