(i) For the following group of assets, compute the composite depreciation rate, the composite life and the amount of depreciation recorded for the first year of ownership of the asset group, assuming that the group of assets was purchased on January 1:
Asset Original Cost Salvage Value Estimated Life in years
A $11,000 $ 500 5
B $ 7,000 $ 200 4
C $ 12,500 $ 800 3
D $16,000 $1,000 6
(ii) If Asset B is sold for $1,000 at the end of 3 years, what journal entry should be made? I need to answerthis question.
| (n) | depr. | |||||
| orig | salvage | est. life | cost | |||
| asset | cost (oc) | value (sv) | in years | oc – sv | sv / n | |
| A | $11,000 | $500 | 5 | $10,500 | $2,100 | |
| B | $7,000 | $200 | 4 | $6,800 | $1,700 | |
| C | $12,500 | $800 | 3 | $11,700 | $3,900 | |
| D | $16,000 | $1,000 | 6 | $15,000 | $2,500 | |
| TOTAL | $46,500 | $2,500 | 4.31 | $44,000 | $10,200 |
Composite life equals the total
depreciable cost divided by the total depreciation per year.
= $44,000 / $10,200 = 4.31 years.
Composite depreciation rate equals depreciation
per year divided by total historical cost.
=$10,200 / $46,500 = 22%
Dep Recorded for Year 1 = $10,200
Item (i) hs been completed, I need help with item (ii), please. Thank you
Economic Debate- Progressive Income Tax For this Economic Debate, we are going to discuss the…
TOPIC: Going Global Discussion Thread 1 (initial post due Wednesday for full credit) Please note:…
Assignment Topic This week will culminate in the creation of a narrated PowerPoint to create…
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. Assignments submitted…
you need to post your 2-page information flier to share with your Final Project Group.…
discussion: Discuss the methods used at your company to measure and ensure quality products and…