Reipl Ltd uses the composite‐rate method to record depreciation of its store equipment. On 1 January 2019, the company owned the following store equipment (ignore GST).

Required

(a) Calculate the composite rate for depreciating the store equipment.

(b) Prepare the entry to record depreciation expense on 31 December 2019, assuming the store equipment account had a balance of $190 000 at year‐end.

(c) Prepare general journal entries to record the sale of a display case for $1500. The case had an original cost of $2600.

(d) Prepare general journal entries to record the exchange of a cash register with an original cost of $3200 for a new cash register with a cash price of $5000. The company received a trade‐in allowance of $1400 for the old register and paid the balance of $3600 in cash.

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Item Cost Residual value Display cases $ 73000 Cash registers 28000 $3000 8000 Useful life 10 years 5 years Shopping trolleys 30000 6000 6 years Shelving 30000 2000 7 years Display racks 12000 1800 4 years $173000