If a firm has tangible fixed assets of $52 million, accumulated depreciation of $40 million, and annual depreciation of $6 million, the estimated remaining asset life is (i) _________ years. The managers’ choice of asset useful lives can easily bias firms’ earnings because the longer a useful life is, the lower are (ii) __________ expenses.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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If a firm has tangible fixed assets of $52 million, accumulated depreciation of $40 million, and annual depreciation of $6 million, the estimated remaining asset life is (i) _________ years. The managers’ choice of asset useful lives can easily bias firms’ earnings because the longer a useful life is, the lower are (ii) __________ expenses.

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