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Remaining Life Depreciation Technique

A technique for handling imbalances in accumulated depreciation. In this technique, any over or under accrued depreciation in the accumulated depreciation is adjusted over the remaining life of the depreciation group. 

Remaining Life Technique is similar to the whole life technique, but it incorporates accumulated depreciation into the numerator of the equation, and the denominator becomes the remaining life rather than the whole life of the asset. 



See also: