Timmy Thomas Company provided the following summary of its fixed assets:

Factory Building

Machinery and Equipment

Small Tools

Patterns

Total Cost

4,800,000

1,400,000

82,000

53,000

Estimated Residual Value

300,000

80,000

5,000

-

Estimated Useful Life

40 years

20 years

8 years

4 years

The composite life of the assets listed above is

a. 31.6 years

b. 34.5 years

c. 29.5 years

d. 32.8 years

What is the composite rate of the assets listed?

a. 3.18%

b. 3.81%

c. 3.38%

d. 3.83%

Assuming straight line method is used, depreciation on the factory building for the third year of its service life is

a. 120, 000

b. 118, 500

c. 112, 500

d. 115, 500

Assuming sum-of-the-years digits' method is used, depreciation on the small tools for the third year of its service life is

a. 10, 694

b. 12, 833

c. 14, 972

d. 17, 110