Expected useful life is
A) calculated when the asset is sold
B) estimated at the time that the asset is placed in service
C) determined each year that the depreciation calculation is made
D) None of these choices

Question

Quizplus · Accepted Answer

Expected useful life is an estimate of the number of years that an asset is expected to be used in the production of income. It is typically determined at the time that the asset is placed in service, based on factors such as historical experience, industry norms, and technological advances. It is important to note that this estimate may be revised if there are significant changes in the way that the asset is used or if there are changes in the external environment that affect its usefulness.

Expected Useful Life Is