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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 generally does not refer to the
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CocaCola Co.s estimated total useful life of depreciable property, plant and equipment increased from 2016 to 2017 and from 2017 to 2018. Estimated time elapsed since purchase The approximate age in years of a companys fixed assets.
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Accounting 34. STUDY. PLAY.Cost divided Useful life in years = ANNUAL amortization expense. Amortization adjusting entry. Amortization expense debitLonglived assets that do not have physical substance and are rights and privileges that result from ownership. Including: goodwill, patents, copyrights, trademarks, licences, etc.
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Depreciation is defined as the expensing of an asset involved in producing revenues throughout its useful life. Depreciation for accounting purposes refers the allocation of the cost of assets to periods in which the assets are used depreciation with the matching of revenues to expenses principle.The process of becoming obsolete
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