Nature Power Company uses the composite method and straight-line depreciation for its power plant equipment. Its Apple River plant, which began generating electricity January 1, 2016, had the following equipment:

Equipment Life (Years) Estimated Cost Residual Value

Turbines 25 $5,200,000 $570,000

Steam pipes 15 3,630,000 363,000

Furnace 20 6,700,000 0

Required:

1. Compute the composite depreciation rate.

2.

Compute the average service life.

3.	Compute 2016 depreciation