At December 31, 2010, Edgar Enterprises had equipment with a book value of $45,000. On December 31, 2009, the book value was $60,000. The original cost of the equipment was $75,000. Assuming straight-line depreciation and no salvage value, what is the estimated useful life of the asset?

5 years

Explanation:

Given that,

Book value of equipment at December 31, 2010 = $45,000

Book value of equipment at December 31, 2009 = $60,000

Original cost of the equipment = $75,000

No salvage value

Book of value of a particular asset includes the adjustment of depreciation expense. So, it is calculated as follows:

Book value of equipment at December 31, 2009 = Cost of equipment - Depreciation expense for 2009

$60,000 = $75,000 - Depreciation expense for 2009

Depreciation expense for 2009 = $75,000 - $60,000

                                                     = $15,000

Depreciation for 2010 = $15,000

Here, we are following straight line depreciation method,

Depreciation expense = (Cost of equipment - Salvage value) ÷ Estimated useful life

$15,000 = ($75,000 - 0) ÷ Estimated useful life

Estimated useful life = $75,000 ÷ $15,000

                                  = 5 years

answer; ///blank(1); security; blank(2); freedom; good luck

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know