Reference no: EM132691984

B&B Company reported the following in the long-term asset section of its balance sheet;

                                                                                                                  Dec. 31, Year 2                    Dec. 31, Year 1

Equipment, net of depreciation of $120,000 and 100,000, respectively    $167,500                           $187,500

Patent, net of amortization of $31,500 and $27,000, respectively               88,000                            92,500

The company uses the straight-line method to depreciate and amortize all of its operating assets. No new long-term assets were acquired nor sold during the year.

Problem 1: As of December 31, Year 2, approximately how old is the equipment in years?

A. 2 years

B. 11 years

C. 6 years

D. 18 years