Presented below is information related to LeBron James Manufacturing Corporation.

Instructions
(a) Compute the rate of depreciation per year to be applied to the plant assets under the composite method.
(b) Prepare the adjusting entry necessary at the end of the year to record depreciation for the year.
(c) Prepare the entry to record the sale of asset D for cash of $4,800. It was used for 6 years, and depreciation was entered under the compositemethod.

Transcribed Image Text:

Asset Cost $40,500 33,600 36,000 19,000 23,500 Estimated Salvage $5,500 4,800 3,600 1,500 2,500 Estimated Life (in years) 10 9 9 7