Reference no: EM132977122
Company ABC reported a gross property, plant, & equipment ("PP&E") balance in 2020 of $16,800. In 2019, the gross PP&E balance was $15,700. In 2020, the Company ABC purchased $2,200 of brand new PP&E. Also in 2020, the depreciation expense was $1,200. At the end of 2020, the accumulated depreciation was $8,150 compared to the $7,650 in 2019. There was no gain or loss on the disposition of PP&;E during 2020. The company uses straight line depreciation and the annual depreciation expense is calculated using the year's beginning balance of PP&E.
Problem 1: With that framework, provide the gross book value of the PPE disposed of in 2020, as well as the proceeds received when Company ABC sold its PP&E? (please show all calculation + inputs)
Problem 2: Furthermore, estimate the average expected life for Company ABC's depreciable PP&E at the start of 2020. Also, provide your estimate for the average age at the start of 2020. Explain your estimates (please show calculations + inputs to back up the explanation).