# Sand River Sales has a fork truck used in its warehouse operations. The truck had an original useful life of five years. However, after depreciating the asset for three years, the company makes a major repair that extends the life by four years. What is the remaining useful life after the major repair?

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

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FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 11, Problem 12EA
Textbook Problem
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## Sand River Sales has a fork truck used in its warehouse operations. The truck had an original useful life of five years. However, after depreciating the asset for three years, the company makes a major repair that extends the life by four years. What is the remaining useful life after the major repair?

To determine

Introduction:

The estimated time period of a depreciable fixed asset over which it can be used productively within operations is referred to as an useful life of an asset.

To discuss:

The remaining useful life of an asset.

### Explanation of Solution

Calculation of revised remaining useful life:

The formula to calculate revised remaining life is given below:

Revised Remaining Useful Life=Original Useful LifeDepreciating Life+Extended Life

Substitute 5 years for orginal life, 3 years for depreciating life and 4 years for extended life in the above formula

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