BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The useful life of an asset is an estimation of the length of time the asset can reasonably be used to generate income and be of benefit to the company. Useful life does not refer to the length of time the asset will last.

Detailed explanation-2: -The useful life of an asset is an accounting estimate of the number of years it is likely to remain in service for the purpose of cost-effective revenue generation. The Internal Revenue Service (IRS) employs useful life estimates to determine the amount of time during which an asset can be depreciated.

Detailed explanation-3: -Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important component in the calculation of a depreciation schedule.

Detailed explanation-4: -Typically, the useful life of an asset fits somewhere within the follow ranges: Cars and automotive equipment: 3-6 years. Furniture: 5-12 years. Machinery and equipment: 3-20 years.