1. the composite life must be ____ years

2. how much is the depreciation for the current year using the composite method

3. assuming the company receives 40,000 upon retirement of the machinery at the end of 5th year, how much should be debited to accumulated depreciation to record the retirement?

4. how much should be recorded as depreciation expense for the 6th year following the composite method?

5. how much is the total carrying amount of the assets at the end of 6th year?

Happy Company owned a power plant which consisted of the following assets all acquired at the beginning of current year. Residual Useful life Cost value Building 6,100,000 100,000 20 Machinery 2,550,000 50,000 5 Equipment 1,030,000 30,000 10 in years