Question
Composite depreciation. Callon Co. uses the composite method to depreciate its equipment. The following totals are for all of the equipment in the group: Initial
- Composite depreciation.
Callon Co. uses the composite method to depreciate its equipment. The following totals are for all of the equipment in the group:
Initial Residual Depreciable Depreciation
Cost Value Cost Per Year
$1,000,000 $100,000 $900,000 $90,000
Instructions
(a) What is the composite rate of depreciation? (To nearest tenth of a percent.)
(b) A machine with a cost of $25,000 was sold for $15,000 at the end of the third year. What entry should be made?
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Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
13th edition
978-1285868806, 1285868803, 978-1305691254, 978-1305465640, 1305465644, 978-1285866307
