Final answer:
The remaining useful life of the plant asset is 3 years, calculated using the straight-line depreciation method with the current year's depreciation expense of $5,000 and an accumulated depreciation of $25,000.
Step-by-step explanation:
The remaining useful life of a plant asset, given that the current year's depreciation expense is $5,000 and the balance in the Accumulated Depreciation account at the end of the year after adjusting entries is $25,000, can be calculated using the straight-line method of depreciation.
The straight-line depreciation method calculates annual depreciation by subtracting the estimated salvage value from the cost of the asset and then dividing by the useful life of the asset. The original cost of the asset is $45,000, with an estimated salvage value of $5,000. The formula for annual depreciation is:
(Cost - Salvage Value) / Useful Life = Annual Depreciation
As we already know the annual depreciation is $5,000, we can calculate the useful life as:
($45,000 - $5,000) / $5,000 = 8 years total useful life
If the Accumulated Depreciation is currently $25,000 and the annual depreciation is $5,000, this means 5 years have elapsed (since $5,000 x 5 years = $25,000). Therefore, the remaining useful life of the asset is:
8 years - 5 years = 3 years
So, the remaining useful life of the plant asset is 3 years.