Answer:
A. Assets Original Salvage Depreciable Depreciable SL Depreciation
Cost Value value Life Per Year
A $46,575 6,325 40,250 10 $4,025
B $38,640 5,520 33,120 9 $3,680
C $41,400 4,140 37,260 9 $4,140
D $21,850 1,725 20,125 7 $2,875
E <u>$27,025</u> <u>2,875</u> <u>24,150</u> 6 <u>$4,025</u>
Total <u>$175,490</u> <u>20,585</u> <u>154,905</u> <u>$18,745</u>
Composite rate of Depreciation = Total Depreciation per year/Total Original Cost
Composite rate of Depreciation = 18745/175490
Composite rate of Depreciation = 0.106815
Composite rate of Depreciation = 10.68%
B. Adjusting entry Debit Credit
Depreciation Expense-Plant Asset $18,745
Accumulated Depreciation-Plant Asset $18,745
c. Journal Entry Debit Credit
Cash $5,520
Accumulated Depreciation-Plant Assets $16,330
Asset D $21,850
(Record Sale of asset D)
