Composite or group depreciation is a depreciation system whereby 1 . the years of useful life of
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Question:
Composite or group depreciation is a depreciation system
whereby the years of useful life of the various assets in the group
are added together and the total divided by the number of
items the original cost of all items in a given group or class of
assets is retained in the asset account and the cost of
replacements is charged to expense when they are acquired the cost of individual units within an asset group is charged
to expense in the year a unit is retired from service a straightline rate is computed by dividing the total of the
annual depreciation expense for all assets in the group by the
total cost of the assets.
the correct answer is a straightline ratw is computed by dividing the total of the annual depreciation expensefor all assets in the group by the total cost of the assets.
Expert Answer:
Answer The correct answer is indeed option 4 In composite or group depreciati... View the full answer
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