In calculating depreciation, the life of an asset refers to its useful life.

Here's why:

1. Physical life: This refers to how long the asset will last physically, which may not necessarily align with how long it can be effectively used in a business.

2. Legal life: This term is often used in the context of intangible assets like patents or copyrights, which have a legally defined period of protection. It's not typically used in calculating depreciation for tangible assets.

3. Useful life: This is the estimated period over which an asset is expected to be usable for the purpose for which it was purchased or its lifespan in productive use. It's the period over which the cost of the asset is spread or depreciated.

4. Technological life: This refers to how long an asset remains technologically relevant. An asset may become obsolete before the end of its physical life due to advances in technology.

Therefore, in calculating depreciation, we use the asset's useful life, which is the period during which the asset is expected to contribute to the company's revenue

Question

In calculating depreciation, the life of an asset refers to its useful life.

Here's why:

1. Physical life: This refers to how long the asset will last physically, which may not necessarily align with how long it can be effectively used in a business.

2. Legal life: This term is often used in the context of intangible assets like patents or copyrights, which have a legally defined period of protection. It's not typically used in calculating depreciation for tangible assets.

3. Useful life: This is the estimated period over which an asset is expected to be usable for the purpose for which it was purchased or its lifespan in productive use. It's the period over which the cost of the asset is spread or depreciated.

4. Technological life: This refers to how long an asset remains technologically relevant. An asset may become obsolete before the end of its physical life due to advances in technology.

Therefore, in calculating depreciation, we use the asset's useful life, which is the period during which the asset is expected to contribute to the company's revenue

Knowee AI · Accepted Answer

In calculating depreciation, the life of an asset refers to its useful life.

Here's why:

1. Physical life: This refers to how long the asset will last physically, which may not necessarily align with how long it can be effectively used in a business.

2. Legal life: This term is often used in the context of intangible assets like patents or copyrights, which have a legally defined period of protection. It's not typically used in calculating depreciation for tangible assets.

3. Useful life: This is the estimated period over which an asset is expected to be usable for the purpose for which it was purchased or its lifespan in productive use. It's the period over which the cost of the asset is spread or depreciated.

4. Technological life: This refers to how long an asset remains technologically relevant. An asset may become obsolete before the end of its physical life due to advances in technology.

Therefore, in calculating depreciation, we use the asset's useful life, which is the period during which the asset is expected to contribute to the company's revenue

In calculating depreciation, the life of an asset refers to its:physical life.legal life.useful life.technological life.

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