Answer
Asset and deprecation expense.
(A) (70,000-7000)/10 = 6,300
(B) (50,000-5000)/5 = 9,000
(C) (82,000-4,000)/12 = 6,500 Total = 21,800
I. Composite rate = Total depreciation / total acquisition cost
=21,800/(70000+50000+82000)= 11%
ii. Composite life = (Cost - salvage value)/depreciation
(63,000+45,000+78,000)/21,800 = 8.5 yrs
Work Step by Step
As illustrated above.
