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      Question

      The ratio of a firm’s property, plant, and equipment,

      net of accumulated depreciation, to its annual depreciation expense is an estimate of:
      A Average age of firm’s assets Correct Answer Incorrect Answer
      B Remaining useful life of firm’s assets Correct Answer Incorrect Answer
      C Net depreciation Correct Answer Incorrect Answer
      D None of the above Correct Answer Incorrect Answer
      E Total depreciation Correct Answer Incorrect Answer

      Solution

      Remaining useful life of firm’s assets =   Net Property Plant and Equipment/depreciation expenses

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