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Question:

Raven Inc.’s balance sheet shows property, plant, and equipment at a historical cost of $223.87 million and accumulated depreciation of $175.67 million. Depreciation expense in the most recent year was $25.89 million. The average remaining useful life of ABC’s property, plant, and equipment is closest to:

A 1.86 years.
Explaination

Average remaining useful life = (Historical cost − Accumulated depreciation) / Annual depreciation = (223.87 − 175.67) / 25.89 = 1.86 years