The average remaining life of a company's assets is computed as the balance of ending net fixed assets divided by depreciation expense.

Name: The average remaining life of a company's assets is computed as the balance of ending net fixed assets divided by depreciation expense.
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The average remaining life of a company's assets is calculated by dividing the net fixed assets by the annual depreciation expense, which gives an estimate of how many years the assets will last.

The Average Remaining Life of a Company's Assets Is Computed