If an item’s accumulated depreciation is calculated as $30, and its annual depreciation is $10, how old is the item?

To determine the age of the item based on its accumulated depreciation and annual depreciation, you can use the formula:

Accumulated Depreciation = Annual Depreciation × Age of the Item.

In this scenario, the accumulated depreciation is $30, and the annual depreciation is $10. By rearranging the formula to find the age, you would calculate:

Age of the Item = Accumulated Depreciation / Annual Depreciation

This translates to:

Age of the Item = $30 / $10 = 3 years.

Thus, based on this calculation, the correct answer indicates that the item is 3 years old.