Useful Life at Life

Useful Life. Useful life refers to the estimated length of time organizations can profitably use an asset before replacement. The complete real estate encyclopedia by denise l.

Thus, altering the useful life has a direct impact on the amount of depreciation expense recognized Changing the useful life of an asset will not alter the total amount of depreciation of that asset. This is an important concept in accounting, since a fixed asset is depreciated over its useful life.

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(2) in appraisal,the time period during which one can expect a positive cash flow from a property. Changing the useful life of an asset will not alter the total amount of depreciation of that asset. Most machines can and do last beyond their useful life. To gauge the remaining useful life of an item, the appraiser will review service records, thoroughly inspect the equipment, and check out the environment where the equipment is used.