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Question
Financial analysts can make comparisons between the long-lived assets of two companies, both of which use straight-line depreciation, by computing the average useful life of assets with which one of the following formulas?
A. Net property, plant, and equipment/average useful life.
B. Gross property, plant, and equipment/average useful life.
C. Gross property, plant, and equipment minus salvage value/straight-line depreciation expense.
D. Straight-line depreciation expense/net property, plant, and equipment.
Answer
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