MANAGEMENT

Detailed explanation-1: -Any asset has a useful life of more than one year. The useful life of an asset include the age of the asset, frequency of use, and business environmental conditions. The IRS provides guidelines for estimating the useful lifespans of assets and the period over which depreciation of the asset may occur.

Detailed explanation-2: -Depreciation definition The value of these assets decreases over time after their purchase because of wear and tear (i.e. use of the asset) and obsolescence. Depreciation represents the estimate for how much this value has declined in a given fiscal period.

Detailed explanation-3: -You can depreciate an asset in the years following its useful life if the asset uses a straight-line or flat-rate depreciation method. You must specify a depreciation limit, defined as a flat amount or as a percentage.

Detailed explanation-4: -Understanding Long-Term assets Some examples of long-term assets include: Fixed assets like property, plant, and equipment, which can include land, machinery, buildings, fixtures, and vehicles. Long-term investments such as stocks and bonds or real estate, or investments made in other companies.