Your company buys a computer server,which it expects to use for eight years and then sell when it upgrades to a more powerful model.The server would probably be used by the business that buys it at that time for another three years.The useful life of the server for your company is:
A)8 years; the total length of time the server is used to produce output for your company.
B)eleven years.
C)the total length of time until the server can no longer function.
D)three years.

Question

Quizplus · Accepted Answer

The useful life of an asset, like a server, for a company is the period during which the company expects to use it for its operations. In this case, the company plans to use the server for eight years before selling it, making the useful life 8 years for them.

Your Company Buys a Computer Server,which It Expects to Use