use deprecation

3. Reyes Machine Company owns three different models of lathes whose data are indicated in the table helow. Model Number Number Owned A 12 B 6 First Cost 25,000 12,000 15,000 Salvage Value 5,000 2.000 3,500 Expected Life 8 10 12 One-half of the lathes of each model will be sold after 8 years and the remainder will be replaced after 12 years. Compute total annual straight-line depreciation charges using (a) the group depreciation method, and (b) the composite depreciation method. (c) Compute the total annual depreciation charges for each method and compute the composite life based depreciation