Question
Question 6 Company X purchased four assets on January 1, 2019: Asset A has an original cost of $40,000, salvage value of $3,000, and useful
Question 6
Company X purchased four assets on January 1, 2019:
Asset A has an original cost of $40,000, salvage value of $3,000, and useful life of 4 years.
Asset B has an original cost of $65,000, salvage value of $6,000, and useful life of 7 years.
Asset C has an original cost of $32,000, salvage value of $5,000, and useful life of 5 years.
Asset D has an original cost of $88,000, salvage value of $10,000, and useful life of 10 years.
The company uses the composite method for depreciation. Calculate the composite depreciation rate and composite life of the assets. Record the journal entry for depreciation on December 31, 2019.
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Fundamental Accounting Principles
Authors: John J Wild, Ken Shaw
24th edition
1259916960, 978-1259916960
